Aave Labs team member: Token buybacks do not create value in themselves and should be seen as a supplementary measure rather than a plan.

According to Odaily, Kolten, a member of the Aave Labs team, posted on X that crypto projects or DAOs should conduct buybacks when they have surplus cash and believe asset prices are low. The tech giant Apple’s strategy is to prioritize investing in its own business, and only conduct buybacks when there is ample remaining cash and the stock is considered the best investment option, with the core being business competitive advantage. This principle applies to any asset, where the main drivers of price are adoption rate, market dominance, and compelling narratives.

Buybacks can send a signal of confidence and reduce token circulation, but in themselves do not create value and should be used as a supplementary measure rather than the main plan.

For tokens, when the new market supply exceeds the buyback amount, the effect of buybacks will be further weakened. Many crypto companies focus excessively on crypto-native buyers, ignoring that 95% of potential investors do not pay attention to tokenomics. Most buyers have never heard of crypto Twitter; they care more about product features and easy-to-understand stories.

In addition, most crypto assets still exhibit correlated trading characteristics. Until projects can attract users and capital that are not dependent on the overall crypto market, it is difficult to achieve independent valuation, and buybacks are unlikely to have a significant impact.