2026-01-03 05:30:27

A co-founder of a leading DEX recently raised a thought-provoking question—should we continue to spend money on token buybacks?

The data is clear: last year, over $70 million was spent on buybacks. It sounds like a significant move, but the reality is harsh—the token price hasn't shown a noticeable improvement. In other words, this money doesn't seem to have achieved the expected results.

So now, the mindset is shifting: instead of continuing pointless buybacks, it might be better to redirect these funds toward growth incentives. To attract new users, retain existing ones, and optimize ecosystem development—this approach seems more worthwhile.

But the final decision still rests with the community. Should we stick to the buyback strategy, or switch to an incentive mechanism? The discussion has just begun, with community members sharing their opinions, and the decision-making process is still long. This case also reflects a deeper question: in a bear market, can simple "money burning" truly save the market?

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

10 Likes

Reward
10
4
Repost
Share

Comment

0/400

SerumSqueezer

· 22h ago

$70 million wasted, it's really unsustainable... Should have invested the money into the ecosystem earlier Buybacks can't really push up the price, anyone who believes that is naive We still have to rely on real applications and user retention; the old method of burning money to rescue the market is outdated Community voting will drag on for another half a year, I bet that a SOL this year is still unlikely Instead of worrying about whether buybacks will happen or not, it's better to see if the product itself is truly competitive

View OriginalReply0

FreeRider

· 23h ago

$70 million wasted is truly outrageous. That's why I never favor pure buyback operations. Honestly, buybacks in a bear market are just closing your eyes and stealing a bell; it's better to directly invest in incentives, which are more practical. Finally, someone dares to tell the truth. Community votes will probably favor incentives. Burning money to rescue the market? Laughs. Who would believe that these days?

View OriginalReply0

NFTBlackHole

· 23h ago

$70 million wasted, that's why I never believe buybacks can save the market Honestly, instead of burning money to maintain prices, it's better to invest in the ecosystem, but what can the community do? Bro, this is a common problem with DEXs. When will we ever figure it out? Burning money to rescue the market? Dream on, it really depends on the product to speak for itself

View OriginalReply0

SocialFiQueen

· 23h ago

70 million dollars just wasted like that? I told you, buybacks are just self-deception in a bear market... It's better to invest real money into the ecosystem.

View OriginalReply0