PONS’s 0.4 support level finally broke after three tests.
The market is still talking about it, but not because of a new narrative. It’s because “buybacks and burns” are colliding with “declining revenue.”
On one side, 80% of protocol revenue goes toward buybacks and burns on the secondary market. The process has reportedly been upgraded to run automatically every 7 days, and some say that more than $208 million has been burned to date.
On the other, the platform’s Meme launch volume and fee revenue continue to decline. Yesterday’s revenue was only 140,000 U, and the number of token launches hit a new low. Since the event ended, the price has continued to weaken, falling about 60% from its peak—though it’s down only about 7% compared with early September.
So the question is: are buybacks providing a floor, or merely delaying the repricing of declining revenue?
If launch activity continues to fade, can buybacks of 80% of revenue support the valuation, or will they only prolong the decline?
The market is still talking about it, but not because of a new narrative. It’s because “buybacks and burns” are colliding with “declining revenue.”
On one side, 80% of protocol revenue goes toward buybacks and burns on the secondary market. The process has reportedly been upgraded to run automatically every 7 days, and some say that more than $208 million has been burned to date.
On the other, the platform’s Meme launch volume and fee revenue continue to decline. Yesterday’s revenue was only 140,000 U, and the number of token launches hit a new low. Since the event ended, the price has continued to weaken, falling about 60% from its peak—though it’s down only about 7% compared with early September.
So the question is: are buybacks providing a floor, or merely delaying the repricing of declining revenue?
If launch activity continues to fade, can buybacks of 80% of revenue support the valuation, or will they only prolong the decline?