Top Crypto Projects Using Token Buybacks

Token buybacks are a strategic mechanism in crypto to reduce circulating supply, enhance scarcity, and signal confidence, often funded by protocol revenues.

The top 3

  1. Binance (BNB): Quarterly Auto-Burn Mechanism: Binance implements a quarterly Auto-Burn mechanism and a real-time BEP-95 burn to continuously reduce the BNB supply, aiming to decrease its total supply by 50% from the initial 200 million tokens.
  2. MakerDAO (MKR): Smart Burn Engine: MakerDAO utilizes a 'Smart Burn Engine' to periodically use excess DAI from its surplus buffer to buy back and burn MKR tokens from Uniswap pools, reducing MKR's circulating supply.
  3. Uniswap (UNI): Fee Switch Activation: Uniswap's governance activated a 'fee switch' that redirects a portion of trading fees (0.05% of each trade) to buy and burn UNI tokens, transforming UNI into a deflationary asset.

Sources

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