Definition ∞ A buyback program involves a company or protocol repurchasing its own tokens or shares from the open market. This action reduces the total supply of the asset, potentially increasing its scarcity and market value per unit. In cryptocurrency, these programs often aim to benefit existing token holders and support the token’s price.
Context ∞ Buyback programs in the crypto space are frequently analyzed for their impact on token economics and investor sentiment. News reports often detail the scale and frequency of these operations, as they can signal a project’s financial health or a strategic effort to support its token. The sustainability and long-term effects of such programs on a protocol’s treasury and ecosystem development are continuous topics of debate.
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