Token buyback

In a buyback, a project spends money it has earned or saved to purchase its own token from exchanges or liquidity pools. The tokens are then burned, sent to the treasury, or handed to stakers. Some exchanges run periodic buy-and-burn programs with a share of profits, and several DeFi protocols route trading fees into automated buyback contracts.

Buybacks are the crypto equivalent of share repurchases: they create steady demand and, if burned, reduce supply, which ties token value more directly to business performance. They have become a popular way to deliver value accrual without paying dividends, which could look more like a security in some jurisdictions.

They only make sense if funded by sustainable revenue. Buybacks paid from treasury reserves or from new emissions simply move value around, and announcements can be larger than actual execution. Check on-chain purchases, the share of revenue committed and whether insiders are selling into the bids.