Part 2/11:
Unlike traditional equities, where share buybacks are a common method for shareholder value enhancement, token buybacks have been relatively nascent in crypto. When a project commits to buy back tokens, it effectively reduces the circulating supply, which—assuming demand remains steady or increases—can bolster the token’s price in the long term. However, the real impact depends heavily on transparency, the percentage of tokens bought back, and whether those tokens are burned permanently or simply added to liquidity pools.