Token buybacks explained simply:
Protocol generates fees → uses that revenue to buy its own token from the market → burns what it buys.
Supply goes down. Demand stays same or goes up. Price should follow.
Closest thing we have to traditional equity buybacks. Except instead of enriching shareholders, you're rewarding token holders directly.
Works when the protocol actually makes money. Doesn't work when it's just recycling VC funding or printing tokens to buy tokens.
Protocol generates fees → uses that revenue to buy its own token from the market → burns what it buys.
Supply goes down. Demand stays same or goes up. Price should follow.
Closest thing we have to traditional equity buybacks. Except instead of enriching shareholders, you're rewarding token holders directly.
Works when the protocol actually makes money. Doesn't work when it's just recycling VC funding or printing tokens to buy tokens.