๐ฅ What Is Buyback & Burn?
Buyback & Burn is a tokenomics mechanism where a project repurchases its own tokens from the open market and then permanently removes (burns) them from circulation.
Once burned, those tokens are gone forever.
๐ How Buyback & Burn Works
The project uses revenue or treasury funds to buy tokens from the market
Purchased tokens are sent to a burn address
Total supply decreases, increasing token scarcity
๐ Why Projects Use Buyback & Burn
Reduces circulating supply
Helps control token inflation
Aligns token value with protocol revenue
Signals confidence in the projectโs long-term growth
โ๏ธ Is Buyback & Burn Bullish?
Often, yes โ but context matters.
Effective when buybacks are consistent and transparent
Works best with real revenue and demand
Short-term price impact depends on market conditions
Buybacks without strong fundamentals donโt last.
๐ง Buyback & Burn vs Token Burn
Token burn: Tokens destroyed (may be one-time or scheduled)
Buyback & burn: Tokens are first bought from the market, then burned โ making it more value-aligned
๐ Final Thought
Buyback & burn acts like a deflationary lever in tokenomics.
When backed by real usage and revenue, it can strengthen long-term value.
In crypto, scarcity + demand = impact.