Crypto projects are increasingly adopting token buyback programs, a practice borrowed from traditional finance to support token economics. In 2026, the industry has spent approximately $640 million on such buybacks, representing a 17% increase compared to the same period in the previous year and a significant rise from the $366,000 recorded in 2024.
Hyperliquid and Pump.fun account for nearly 90% of the total expenditure on buybacks. Hyperliquid has utilized 99% of its revenue to buy back and burn HYPE tokens, while Pump.fun has allocated 50% of its revenue to remove PUMP tokens worth $446.65 million from circulation. Meanwhile, the Spark protocol has acquired over 143 million SPK tokens, which are held in the treasury rather than burned.
While buybacks can create demand and provide a tangible link between protocol success and token value, experts warn that they may not guarantee price appreciation. For instance, PUMP remains 50% below its September 2025 all-time high despite aggressive buybacks. Analysts emphasize that investors should distinguish between sustainable business models and financial engineering.
Legal experts note that token buybacks differ from corporate share repurchases, as token holders typically lack the legal rights associated with equity. Furthermore, regulators are currently examining these mechanisms, with the draft Digital Asset Market Clarity Act of 2025 highlighting concerns regarding the underlying sources of token value and the long-term sustainability of such practices.