How Does a ‘Buyback and Burn’ Mechanism Affect the Circulating Supply and Token Price?

A buyback involves the protocol using its revenue or treasury funds to purchase its native token from the open market. The 'burn' then permanently removes these tokens from the circulating supply.

This reduction in supply, assuming constant or increasing demand, exerts upward pressure on the token's price. It also signals commitment to value accrual and reduces potential future treasury selling pressure.