Buyback mechanisms spark genuine debate in crypto circles—let's break down what's actually happening.

On the surface? Pure marketing gold. Nothing says "project health" quite like seeing your protocol snap up its own tokens. It's a confidence signal that moves sentiment, no question.

But dig deeper and the picture gets murkier. Traditional buyback structures tend to create friction: they provide convenient exit ramps for early sellers (liquidating their positions without tanking the market), drain project treasuries that could fund development, and paradoxically give hodlers zero real incentive beyond price speculation. You're essentially transferring revenue away from innovation.

The real question isn't whether buybacks work—they do, as marketing. It's whether they're the smartest long-term allocation of a project's financial resources. That's where the math gets uncomfortable for many teams.