We present evidence that excision of the nonreplicative transposon Tn1
0 involves three distinct chemical steps, first-strand nicking, hairpi
n formation, and hairpin resolution. This three-step mechanism makes i
t possible for a single protein-active site to cleave two DNA strands
of opposite polarity, as appears to be the case in this reaction. We i
nfer the existence of alternating bifunctionality within the active si
te with suitable modulation of substrate components between steps. DNA
double-strand breaks are also made by a ''hairpin mechanism'' in V(D)
J recombination, possibly reflecting the same basic constraints faced
in the Tn10 system. Similarities in the basic chemical steps in Tn10 t
ransposition and V(D)J recombination suggest that the V(D)J mechanism
may have evolved from a bacterial transposition system.