Definition ∞ Token buybacks occur when a project or entity uses its treasury funds to repurchase its own native tokens from the open market. This action reduces the circulating supply of the token. It is often implemented as a strategy to potentially increase the token’s value or redistribute wealth.
Context ∞ News related to token buybacks typically reports on the volume of tokens repurchased, the total expenditure, and the projected impact on token price and scarcity. Analysis often considers whether these actions align with the project’s long-term economic model and governance.
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