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💸 The Buyback Conundrum: Play Smart or Protect Trust?
ℹ️ Protocols now use real revenue to buy their own tokens back - a big step for making tokens more like 'stocks + dividends.'
⚠️ Problem: most buybacks happen when prices are high (during hype) & slow down when prices are low (during quiet times).
Bad timing.
Current buybacks also often just 'pay market price,' which removes liquidity & makes tokens even pricier.
💡 Smarter options:
🔲 Place bids below market 👉 cheaper buys & more liquidity.
🔲 Spread buys evenly over time 👉 avoids boom/bust timing.
🔲 Trigger extra buys when tokens look undervalued.
💡 Tradeoff: 'dumb' buybacks = transparent, predictable & easy to trust for the community.
But 'smart' buybacks = better execution but more complex.
🆕 Protocols are experimenting & the future looks like:
Maker Bids + Smoothing + Full Transparency.