Token Buyback Amount Reaches $638 Million, Debate on Long-term Effects Expands

The token buyback amount for crypto projects has increased to $638 million as of the end of August this year. While the structure linking profits to token purchases and burns is spreading, the lack of legal claims for token holders has intensified the debate over long-term effects. According to blockchain data firm Alium Labs, the token buyback amount is expected to exceed $545 million in the same period of 2025. Hyperliquid and Pump Fund account for nearly 90% of this year's total. Hyperliquid uses trading fees for token purchases, while Pump Fund allocates half of its revenue to PUMP purchases and burns. The cumulative purchase and burn amount for Pump Fund is $447.85 million, showing a connection between buyback amounts and revenue metrics. However, Pump Fund has stated that PUMP does not confer rights to equity or dividends. Uniswap is also mentioned as an example of linking fees and burns, with protocol fees to be used for UNI burns after December 2025. Discussions are ongoing in the domestic market about linking on-chain revenue to token buybacks, emphasizing the importance of the sources and uses of buyback funds. The Bank for International Settlements has analyzed that buyback commitments could increase funding amounts, but there are concerns that large investors might exploit this.

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