Solana DEX Jupiter Announces $750 Million JUP Buyback Program
Recent discussions highlight investor reactions to announcements from crypto projects regarding buybacks, burns, and revenue sharing. Key points include:
- Solana DEX aggregator Jupiter announced a JUP buyback program using 50% of its fee revenues.
- The projected annualized buyback amounts to $750 million, representing 40% of JUP's circulating supply.
- This equates to an annualized buyback yield of approximately 42%.
- Carlos Gonzalez from Blockworks Research noted that while buybacks can support token prices, they do not guarantee against significant drops in value.
- Other projects like Raydium have successfully implemented buybacks, accumulating 20% of RAY's supply.
- Virtuals committed to $40 million in buybacks for over 10,000 agent tokens, but recent market conditions saw major tokens lose their gains.
- Blue-chip DeFi protocols are returning revenues to token holders, with Compound proposing a fee switch for COMP stakers and Aave suggesting a buyback plan for AAVE.
- Gnosis allocated $30 million for buying back GNO over six months, while Starknet introduced staking with a 12.94% APY.
- Despite these efforts, GNO has declined by 46%, and STRK’s price has remained stable since implementing their proposals.
Value accrual mechanisms are important but should not be viewed as definitive solutions for stabilizing token prices.