The post Crypto News: Token Buybacks Face Timing Flaws, New Models Propose Solution appeared on BitcoinEthereumNews.com.

Key Insights: Crypto news: Token buyback programs concentrate purchases during periods of high market demand, while reducing spending during periods of lower demand. Current taker-focused buyback models remove liquidity and create immediate price impact during high-activity periods. New maker-based approaches and temporal smoothing techniques address structural timing inefficiencies in protocol buyback programs. Crypto protocols operate with a fundamental flaw in their token buyback strategies, which concentrate purchases at market peaks while starving them during periods of lower prices. An anonymous Raydium contributor known as Infra identified this structural problem in an Aug. 26 report shared via X. The analysis revealed how current revenue-based buyback programs created reflexive timing issues that worked against optimal execution. Reflexive Timing Issues The dominant buyback model ties spending directly to protocol revenue, which creates counterproductive timing patterns. When markets heat up, prices, activity, and fees climb together, which pushes programmatic buybacks to spend more during expensive periods. When markets cool, activity and fees fall together, which reduces buyback spend during cheaper periods. Jupiter Exchange exemplified this approach by allocating 50% of protocol fees toward repurchasing JUP tokens. The exchange generated $102 Million in revenue during 2024, with revenue surging from $3 Million in January to $21 Million in December. The buyback program spent approximately $50 Million on JUP repurchases throughout 2025, creating sustained buying pressure but following the problematic timing pattern. Ethena Foundation executed a similar model through its $260 Million buyback program via StablecoinX. The program allocated $5 Million daily over six weeks, repurchasing 83 million ENA tokens, which represent 3.48% of the circulating supply. Hyperliquid demonstrated the most aggressive implementation of this model. The protocol’s automated buyback strategy utilized 97% of the protocol fees to repurchase HYPE tokens. In total, it gulped 29.8 million tokens, valued at over $1.5 Billion. Execution Alternatives The…

---

Filed under: News - @ August 29, 2025 3:27 pm