Here’s the breakdown:

What is a buyback?
The project takes cash (or its stablecoin reserves) and uses it to buy its own token from the open market. Then it either:

Burns it → reducing supply permanently.

Holds it in treasury → to redistribute later.

Why do it?

Supports price by creating buy pressure.

Rewards long-term holders by reducing circulating supply.

Signals confidence: “We believe in our token enough to buy it ourselves.”

Does it always work?
Not really. If market sentiment is bearish or whales are dumping, the boost might be short-lived. Sometimes buybacks just delay the inevitable if fundamentals are weak.

When does it shine?

Strong project revenue (fees/fundamentals to sustain buybacks).

Scarcity model (like burns → supply shrinkage).

Timing with market momentum.

Takeaway: Buybacks can give your bags a sugar rush, but they aren’t magic. Long-term value still depends on utility, demand, and execution.