Aave Labs team member: Token buybacks themselves do not create value and should be seen as a supplementary means rather than a planned initiative.

Kolten, a member of the Aave Labs team, posted on the X platform stating that crypto projects or DAOs should conduct buybacks when they have excess cash and believe asset prices are undervalued. The strategy of tech giant Apple is to prioritize investing in its own business and only conduct buybacks when there is sufficient remaining cash and the stock is considered the best investment option, with the core focus on business competitive advantage. This principle applies to any asset, with the main drivers of price being adoption rate, market dominance, and an attractive narrative.

Buybacks can release confidence signals and reduce token circulation, but they do not create value by themselves and should be used as a supplementary measure rather than the plan itself.

For tokens, when the market's new supply exceeds the buyback volume, the effect of buybacks will be further weakened. Many crypto companies overly focus on crypto-native buyers, ignoring that 95% of potential investors do not pay attention to token economics. Most buyers have never heard of crypto Twitter and value product features and easy-to-understand stories more.

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