Skip to main content

How Is the Concept of “Burning” Similar to or Different from a Stock Buyback in Traditional Finance?

Both "burning" and stock buybacks reduce the circulating supply of an asset. Burning permanently removes the tokens from existence, often in exchange for collateral.

A stock buyback, however, involves a company purchasing its own shares, which are then usually held as treasury stock or retired. The key difference is the permanence and mechanism of removal.

How Are Token Burning Mechanisms Used to Manage Treasury Token Supply?
What Is ‘Token Burning’ and How Does It Affect the Total Supply?
How Does a Token Buyback Differ from a Coin Burn?
How Can a Token Buyback and Burn Mechanism Create Value for Governance Token Holders?