Are token buybacks becoming the new altcoin tokenomics?

[Mayor of ogba]

Token buyback isn't a new thing in the crypto world because a lot of crypto projects has buyback their token in the past. The good thing about token buyback is that it create token scarcity and build trust among investors. I think one good reason why more projects are including token buyback in their tokenomics could be to attract investors that will invest in their projects, so be careful how with the projects that added token buyback in their tokenomics because not all projects will buyback its token, some will run away after collecting investors hard earned money.

[Localhostspeed]

Binance BNB had been doing buyback programs, don't know if they have stopped, burning some part of the token I mean. Each time the period reach, BNB price rises upward for a short period of time.

Some projects who have real good intentions often become successful when this program is implemented especially when they keep to their words and experiments it consecutively.

Some promises it and never get to execute that plan, they often fail and never buy back causing the token to loose liquidity and price dump.

They haven't stop according to them but I don't think the team is transparent like before, that's the problem of buyback, the team don't let you knkw how they do it. You may see the exchange make an announcement next weekend or next month that they have bought $20m worth of BNB and they have send the token to a burn address but there is no way to confirm it because BNB is a liquid coin that has millions of trading activities going everyday, you wouldn't know they do a buy back.

Honestly, I don't take buy back a credible thing to rely on. If you have a coin you afr holding and you are affected and the team says they are doing back to keep the price okay, you may want to wait until the price make a recovery otherwise, I will strongly advice you buy a coin that does not have a buy back, most of them are waste of expectations, they will never meet them.

[nelson4lov]

While I like the concepts of buybacks, I think it only works if there is genuine interest in the project with actual usage. Hyperliquid gets a lot of praise for its buyback program but that program wouldn't be possible or be as effective as it is right now in its current state and form if the Hyperliquid products (perps, spot, 24/7 tradfi stocks trading, etc) were not being used. If they were making like $1K daily in fees like most failed Layer 2 projects, it simply wouldn't have been enough to weather most of the sell pressure.

[Rengga Jati]

Token buybacks have actually been around for a long time; it is a mechanism implemented by various tokens or platforms. The purpose is to optimize value, as the process is directly linked to supply and demand dynamics. These are often accompanied by token burn programs, which share the same fundamental objective: controlling supply and increasing value.

What do you guys think? Would you rather hold an altcoin with aggressive buybacks, direct fee sharing, or would you prefer the project to put that money back into growth?

Even though tokens with buyback programs are currently booming and going viral, that doesn't necessarily mean they are all worthwhile or built to last. Holding coins that feature buyback programs can be tricky. There are always risks involved, as there is no guarantee they will continue to survive and grow over time. Success ultimately depends on several factors, including the token's intrinsic value and the developers' commitment to the project's development.

So, always exercise caution when selecting coins, even those that utilize a buyback system.
Token Buybacks

[o48o]

They haven't stop according to them but I don't think the team is transparent like before, that's the problem of buyback, the team don't let you knkw how they do it. You may see the exchange make an announcement next weekend or next month that they have bought $20m worth of BNB and they have send the token to a burn address but there is no way to confirm it because BNB is a liquid coin that has millions of trading activities going everyday, you wouldn't know they do a buy back.

Honestly, I don't take buy back a credible thing to rely on. If you have a coin you afr holding and you are affected and the team says they are doing back to keep the price okay, you may want to wait until the price make a recovery otherwise, I will strongly advice you buy a coin that does not have a buy back, most of them are waste of expectations, they will never meet them.

Why would it matter where they bought it from or acquired it if that amount is been sent to the burn address, which you definitely can confirm with transaction hashes.
Isn't that the whole point of it? Not the market buy aspect but that supply is getting smaller and not dumped to markets.

Personally i don't like the fact that they have pledged to cap their burns to 50% of the supply. if it wouldn't have such a cap, then actual market buybacks would be inevitable eventually.