In crypto they’re not value creation, they’re value destruction. Burning revenue that could’ve fueled reflexive growth through product development, user acquisition, and proper distribution.
Don’t get me wrong, it’s better than nothing for now, and historically buybacks did make sense:
1) In the days of regulatory witch hunts, projects had to avoid anything that looked like a security. Buybacks became the obvious gray-zone workaround.
2) Investors were scarred by rug pulls and scammy founders. Buybacks became the easiest way for teams to signal alignment with their community.
3) 99% of this market isn’t investors, it’s traders and quick profit chasers. They want quick catalysts. Buybacks were candy for them, good for a short-term pump, but bad for sustainable value.
In my opinion, it’s time for a change.
We now have regulatory tailwinds, early frameworks like the Token Transparency initiative by @Blockworks_, and an industry that clearly wants and needs to mature.
Founders should start building for long-term investors and core communities, the ones who want asymmetric upside via compounding effects.
That requires transparency, trust, and treating tokens as what they’re destined to become: equity on-chain. Where cash flows accrue, treasuries grow, and holders can underwrite value over years, not weeks.
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Buybacks are cope.
In crypto they’re not value creation, they’re value destruction. Burning revenue that could’ve fueled reflexive growth through product development, user acquisition, and proper distribution.
Don’t get me wrong, it’s better than nothing for now, and historically buybacks did make sense:
1) In the days of regulatory witch hunts, projects had to avoid anything that looked like a security. Buybacks became the obvious gray-zone workaround.
2) Investors were scarred by rug pulls and scammy founders. Buybacks became the easiest way for teams to signal alignment with their community.
3) 99% of this market isn’t investors, it’s traders and quick profit chasers. They want quick catalysts. Buybacks were candy for them, good for a short-term pump, but bad for sustainable value.
In my opinion, it’s time for a change.
We now have regulatory tailwinds, early frameworks like the Token Transparency initiative by @Blockworks_, and an industry that clearly wants and needs to mature.
Founders should start building for long-term investors and core communities, the ones who want asymmetric upside via compounding effects.
That requires transparency, trust, and treating tokens as what they’re destined to become: equity on-chain. Where cash flows accrue, treasuries grow, and holders can underwrite value over years, not weeks.
The market doesn’t need more buybacks.
It needs productive tokens and patience.