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What Is the Economic Rationale behind a ‘Buyback and Burn’ Strategy?

The rationale is to create a positive feedback loop for the token's value. The protocol uses its generated income to create buying pressure (buyback) and simultaneously reduce future supply (burn).

This aims to increase demand and decrease supply, leading to a higher token price. It signals confidence in the project's long-term financial health.

How Does a ‘Buyback and Burn’ Mechanism Affect the Circulating Supply and Token Price?
What Is the Difference between a ‘Buyback and Burn’ and a ‘Buyback and Distribute’ Mechanism?
How Does a Token Buyback Differ from a Coin Burn?
How Does a Token Burn Relate to a Stock Buyback in Traditional Finance?