How Does a Buyback-and-Burn Strategy Work?

A buyback-and-burn strategy involves a project using its generated revenue or treasury funds to repurchase its own tokens from the open market. These repurchased tokens are then permanently removed from circulation (burned).

This mechanism serves as a deflationary measure to support the token's price and is often seen as a way to distribute profits to existing token holders.

How Can a Token Buyback and Burn Mechanism Create Value for Governance Token Holders?
Explain the Concept of “Token Burn” and Its Effect on Fungible Token Supply and Value
What Is the Purpose of a Token Burn Mechanism?
What Is the Difference between a ‘Buyback and Burn’ and a ‘Buyback and Distribute’ Mechanism?
What Are the Primary Differences between the ISDA Master Agreement and the GMRA (Global Master Repurchase Agreement)?
How Can a Company Use a Token Buyback Program to Support Utility without Implying a Security?
How Does a Token Burn Relate to a Stock Buyback in Traditional Finance?
How Does a Token Burn Mechanism Counteract the Effects of a Large Supply Release?