UXLINK Proposes Monthly Token Buyback, Price Climbs 5%

UXLINK, a Web3 social platform, announced a monthly buyback proposal for its native token, UXLINK.
The project plans to use part of its monthly profits to buy back at least 1% of the total UXLINK token supply, adding these to Strategic Reserves.
The move aims to increase UXLINK's long-term value as the token price has underperformed despite steady profitability and user growth.
The proposal is open for community voting, ending by the upcoming weekend.
Token buybacks typically reduce market supply, potentially increasing prices if demand remains constant.
Following the announcement, UXLINK's price rose over 5%, trading near $0.01166, with a 5% increase in market cap over the past 24 hours.
This initiative aligns with a broader market trend, where buybacks have exceeded $1.4 billion this year.
Other projects like Hyperliquid and LayerZero have also engaged in significant buybacks.
Tokens often see price increases following buyback news; examples include SYRUP rising 16% and TYCOON gaining 80% after similar announcements.
If approved, UXLINK may experience a short-term price rally.