The Bear Case for Token Buybacks

Despite renewed enthusiasm for buyback programs, our analysis finds no clear evidence that the market rewards these initiatives, as token performance remains driven by metrics growth and narrative formation. Programmatic and indiscriminate buybacks lead to poor capital allocation practices, as protocols risk overpaying for tokens during speculative market cycles and limiting financial flexibility during drawdowns. Alternative strategies such as investing in growth, strategic buybacks, and direct revenue distribution mechanisms provide more sustainable and effective pathways to long-term tokenholder value and investor confidence.