Aave Labs team member Kolten emphasizes that token buybacks should only be conducted when a project has excess cash and perceives its token as undervalued. He explains that buybacks serve as confidence signals and reduce circulation but do not inherently create value, which fundamentally depends on adoption, market dominance, and product narrative. Additionally, the impact of buybacks is limited when new token supply surpasses buyback volume, and broad investor focus lies more on product utility than tokenomics.