Degen

How Token Burns and Buybacks Impact the Value of Degen Tokens.

Token burns and buybacks are key strategies that impact the value of Degen tokens by creating scarcity and price support. Token burns permanently remove tokens from circulation, reducing supply and increasing perceived value if demand remains strong. This deflationary mechanism can drive long-term price appreciation and encourage holding. Buybacks, where the project repurchases tokens from the market, provide immediate price support, signaling confidence and stability. However, these strategies only work if backed by real utility and strong community engagement. Without sustained demand, burns and buybacks may create short-term hype but fail to establish long-term value for the token.