What Is the Difference between a ‘Buyback and Burn’ and a ‘Buyback and Distribute’ Mechanism?
'Buyback and burn' permanently removes tokens from circulation, reducing supply and aiming to increase price. 'Buyback and distribute' uses the purchased tokens to reward stakers, liquidity providers, or active governance participants.
The latter does not reduce circulating supply but serves as a direct yield incentive, encouraging utility and locking up tokens, which can indirectly support the price.