Reconsidering Token Buybacks in Crypto Projects

The regulatory uncertainty surrounding crypto has muddied the waters on what actually works for early-stage projects. When it comes to token buybacks? They're often more of a liability than a solution.

But here's where it gets interesting—what if we rethought the whole structure?

Instead of traditional buybacks, some argue the real answer lies in giving tokens genuine equity rights. The logic is compelling: if tokens represent actual ownership stakes with voting power and revenue claims, buybacks become less necessary. You're not artificially propping up price through market operations. Instead, token holders have real skin in the game—profit sharing, governance participation, the works.

The tension is real though. Most early projects don't have the infrastructure or revenue to justify full equity treatment. So the question becomes: do we force-fit equity mechanics into immature projects, or do we design token economics around what actually scales?

It's not just theoretical. How teams approach this shapes whether their tokenomics stay relevant three years down the line or become a cautionary tale.