Do Token Buybacks Make Sense?

More crypto projects are overhauling their tokenomics and taking a closer look at integrating token buybacks.

Subscribe to Bankless or sign in

Aave recently announced a new tokenomics overhaul featuring buybacks, and it’s not the only project out there making this move. 

Since Trump won the election, more crypto projects have introduced tokenomics rehauls, whether via revenue share or buybacks, viewing the regulatory climate as more accommodating for such experimentation. Arbitrum is another prominent name adopting a buyback program, signaling a shift toward implementing TradFi techniques as crypto projects attempt to boost their bottom line and better control their token supply.

With these tokenomic overhauls, chatter has erupted on X about whether or not buybacks are the right approach for strengthening digital assets. Opponents dismiss buyback-and-burn as an outdated, finite solution from TradFi, whereas supporters tout it as a direct demonstration of product-market fit and market dominance. 

Subscribe for free to continue reading

  • Support the Bankless Movement
  • Access to thousands of articles
  • Complete archive of Bankless episodes
  • Embark on free quests in Airdrop Hunter
  • Daily alpha in your inbox

Already subscribed? Sign in


2
0
David C

Written by David C

369 Articles View all      

David is a writer/analyst at Bankless. Prior to joining Bankless, he worked for a series of early-stage crypto startups and on grants from the Ethereum, Solana, and Urbit Foundations. He graduated from Skidmore College in New York. He currently lives in the Midwest and enjoys NFTs, but no longer participates in them.

No Responses
Search Bankless