The power of the buyback flywheel is only now beginning to show

Some leading DEX protocols do one thing every week — use 50% of their revenue (later plans mention 90%) directly for market buybacks of their tokens, then lock them for 3 years. It sounds simple, but the key is the compound effect.

Here’s the data: by mid-December, they had spent $11.37 million, buying back over 10 million tokens. This isn’t just simple buying and selling; it’s a closed loop formed through continuous buybacks — the more revenue, the more aggressive the buybacks; tokens are locked, liquidity becomes tighter; prices may become more resilient; and the protocol’s value feedback becomes stronger.

That’s why some exchanges and DEXs can establish self-reinforcing growth models. When token supply decreases, protocol cash flow continues, and the entire flywheel starts turning, later participants truly realize how deep this mechanism runs.