Definition ∞ A treasury buyback in the context of digital assets involves a project or protocol repurchasing its native tokens from the open market using funds held in its treasury. This action aims to reduce the circulating supply of the token, potentially increasing its scarcity and market value. It serves as a mechanism for value accrual and capital management.
Context ∞ Treasury buybacks are often implemented as a deflationary measure or to signal financial strength and commitment to token holders. The decision to execute a buyback is frequently a subject of community governance proposals and market speculation. This strategy can significantly influence token price dynamics and investor perception of a project’s long-term viability.
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