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When encrypted currency projects are issued large ads using words such as "repurchase", "burning" or "revenue sharing", this usually means that there are influential upward investment winds.
But I have questions. How important is the annual re -purchase of 10 % actually when these symbols can decrease by 20 % in one day?
Is the entitlement of value an important matter because it is valuable for reasons related to basic analysis (i.e. cash flows), or just because of the narrative optics?
During the weekend, the Solana Dex JuPiter Complex announced a large re -purchase program for JuP with 50% of the revenue of the fees.
Based on the estimates of Carlos Gonzalez, BlockWorks research analyst, this translates into about $ 750 million of the annual JUP purchases, or about 40 % of the JUP's circulating supply within a year.
This is an impressive annual re -purchase of about 42 %.
But what matters to 42 % when the prices of symbols decrease by 90 % per week?
Well, it is not flashing in the solution, but it helps to resist the pressure of the sale. Carlos referred to Redium A successful experience with re -purchases:
“Raydium has raised 20% of Ray supplies since its re -purchase program. With regard to the market structure, it adds a purchase pressure to the distinctive symbol and Ray's performance has exceeded most Solana Defi. The basics are important but of course you can also find examples of saying that Re -purchase is not so up.
Virtuals, the leading artificial intelligence customer launch platform on Base (now expands to include Solana) as well committed Two weeks ago, an estimated $ 40 million in re -purchasing and burning operations for more than 10,000 agent symbols over 30 days of Twap.
Since the announcement of re -purchases on January 15, the five largest symbolic reports of the agent have been quite It is Game, Convo, AIXBT, Sekoia, and Misato, all of which have given up all its gains since the market collapsed yesterday.
Over the past year, many excellent decentralized financing protocols have sought actual proportionality for the product market also sought to restore revenues to distinguished symbols.
The compound, for example Proposal In August, the fees were transferred to allocate 30% of its reserves to the shareholders at COP.
Last July, Mark Ziller suggested the suggestion of "purchase and distribution" to rebuild AAVE in the open market with "excess revenue for the protocol".
Then there is uniswap, which Planned To implement the uni's changing fee for the stakeholders, but the proposal soon has been abandoned receive SEC Wells notification after two months (UISWAP returned attempt A form of accumulation of value on the upcoming unichain).
Home L2S like resolution,, Start and Gnat Suggestions were offered last year to return value to the distinguished symbols who share their distinctive symbols.
Starknet voted last September to enable the stacing process in Starknet (12.94% APY) and Gnosis read a proposal in June to spend $ 30 million from the DAO wardrobe to rebuild the liquid GNO for six months.
As much as I can say, among all the proposals of the accumulation of the above -mentioned value, only Starknet and Gnosis have already implemented their cumulative value mechanisms.
However, since these value accumulation mechanisms have been developed, GNO has witnessed a 46%decrease, while Strk remained fixed.
So what are the correct mental models to think about the accumulation of value? They are not a magic bullet. But it is an essential element in the recipe for obtaining a successful symbolic launch.
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