Buck Launches Bitcoin-Pegged Savings Coin 'BUCK' with 7% Yield from Strategy-Related Assets

Buck Labs has launched the BUCK token, a yield-bearing savings coin intended for non-U.S. users. The token is backed by shares in Strategy Corporation (MSTR) and aims to provide annualized returns of approximately 7%. Unlike stablecoins, BUCK does not maintain a strict dollar peg and is subject to market fluctuations. The project's structure allows holders to participate in governance decisions and reward distribution.

BUCK's yield is funded through the Buck Foundation's holdings of Strategy's STRC perpetual preferred shares. These shares pay periodic returns to the foundation's treasury, which in turn fund the rewards for token holders. Rewards are compounded every minute, providing continuous income for investors.

The company explicitly states that Strategy and its chairman, Michael Saylor, are not involved in or endorsing the project. Buck Labs aims to fill a gap in the crypto market by offering a savings-focused alternative to traditional stablecoins.

Why the Move Happened

BUCK is designed to appeal to users who seek predictable returns on their crypto holdings without engaging in active trading. According to Travis VanderZanden, CEO of Buck Labs, the token addresses the need for both spending and saving mechanisms in a healthy economy.

The token's governance model allows holders to vote on protocol decisions, including reward distribution. This decentralized approach is intended to align with the values of the crypto community.

How Markets Responded

BUCK is positioned to complement rather than compete with existing stablecoins. Its initial price is set at $1, but it is not guaranteed to maintain a one-to-one peg with the U.S. dollar. This flexibility allows the token to respond to market conditions.

Market analysts suggest that BUCK targets a niche audience of investors who are looking for yield without the volatility associated with speculative trading. This strategy could attract users who prefer a more conservative approach to crypto investing.

What Analysts Are Watching

The success of BUCK will depend on its ability to generate consistent returns and maintain user interest. Analysts are also watching how the token performs in a broader market that includes both stablecoins and other yield-bearing instruments.

Investors will be closely monitoring the Buck Foundation's holdings and the performance of STRC shares. Any changes in the underlying assets could impact the yield generated for BUCK holders.

BUCK's launch reflects a growing trend of innovation in the crypto space, where new products are emerging to cater to diverse investor needs. As the market evolves, the demand for yield-generating crypto assets is expected to continue rising.