Published: January 4, 2026
Token buybacks were once hailed as a powerful tool for supporting prices and rewarding holders in cryptocurrency projects. In 2025, however, several high-profile teams—including Jupiter on Solana and Helium—spent tens of millions on repurchases only to see minimal lasting impact on token value. This shift has sparked debate about whether buybacks remain viable in a maturing market.
The Changing Role of Token Buybacks
Buybacks involve using protocol revenue to repurchase tokens from the open market, often locking or burning them to reduce supply.
- Early success: Short-term pumps and scarcity signals.
- 2025 reality: Prices often stagnate or decline despite aggressive programs.
- Market evolution: Investors prioritize real growth over mechanical scarcity.
As crypto moves toward sustainable economics, traditional buybacks face scrutiny.
Case Studies: Jupiter and Helium Reassess Buybacks
Jupiter’s $70 Million Experiment
Jupiter allocated substantial fees to JUP repurchases throughout 2025.
- Spent over $70 million on buybacks.
- Initial rally faded; token hit new lows despite efforts.
- Leadership questions redirecting funds to user incentives and platform growth.
Helium’s Pivot from Buybacks
Helium generated strong revenue but paused HNT repurchases.
- Monthly earnings ~$3–4 million shifted to network expansion.
- Focus on subscriber growth and partnerships over token support.
- Signal that markets no longer reward buybacks alone.
Why Buybacks Are Becoming Less Effective
Several factors diminish impact:
- Ongoing emissions/unlocks often offset repurchased supply.
- Investor sophistication: Focus shifts to revenue durability and usage.
- Competition: Projects with direct burns or incentives gain edge.
- Market maturity: Scarcity alone insufficient without fundamentals.
Alternatives Gaining Traction
Teams explore new models:
- Direct burns for permanent reduction.
- Revenue sharing with stakers or users.
- Growth-focused spending on development and adoption.
- Hybrid approaches tying buybacks to performance metrics.
Implications for Token Economics in 2026
The trend suggests evolution:
- Tokens valued more like equities—revenue, utility, alignment.
- Projects prioritizing real ecosystem expansion.
- Investors rewarding sustainable models over short-term mechanics.
Conclusion
2025 experiences with buybacks at Jupiter, Helium, and others reveal limitations in a changing landscape. While once effective for signaling confidence, heavy spending now often yields diminishing returns. Forward-thinking teams redirect resources toward growth and incentives—potentially defining stronger token economics for 2026 and beyond.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrency markets are highly volatile.
