Sky's Buybacks Challenge the Market—Can Scarcity Outlast Volatility?

Generated by AI AgentCoin World
Wednesday, Sep 3, 2025 3:36 am ET1min read
AAVE
--
UNI
--
Aime RobotAime Summary

- Sky's $75M token buyback program over six months boosted SKY's price by 8% since February.

- The initiative, allocating $4.28M initially and $18.31M in March, reduced supply to enhance scarcity.

- Other projects like World Liberty Financial and Pump.fun also launched buybacks to stabilize token values.

- Despite gains, SKY's 9.6-cent peak in July lagged behind Uniswap and Aave's 6-25.8% increases.

Sky, formerly known as Maker, has implemented a $75 million token buyback program over the past six months, which coincided with an 8% increase in the price of the SKY token since the initiative began in February. According to Sky’s internal dashboard, the program commenced on Feb. 24 with $4.28 million allocated to the buyback efforts, while the SKY token was trading around 6.3 cents. As of now, the token is trading above 6.85 cents, as reported by CoinGecko [1].

The platform spent 5.5 million USDS stablecoins in August alone to repurchase 73 million SKY tokens, contributing to the total buyback spend of 75 million USDS since the initiative’s inception. The buyback plan is a strategic mechanism to reduce the circulating supply of tokens, potentially increasing scarcity and supporting price appreciation. March was the most aggressive month of the program, with $18.31 million spent on token purchases [1].

Despite the buyback efforts, the SKY token hit a high of 9.6 cents in late July, nearing its all-time peak of just over 10 cents in December. However, it followed a broader market decline from late July and did not benefit from a recovery seen in mid-August. During the same period, similar platforms such as

Uniswap
(UNI) and
Aave
(AAVE) saw gains of 6% and 25.8%, respectively [1].

The tokenomics strategy implemented by Sky reflects a long-term approach to value creation through supply reduction. The protocol’s consistent monthly purchases highlight its commitment to the buyback plan. While the price performance of SKY has been modest compared to some sector peers, it remains a demonstration of the project’s confidence in its future trajectory [1].

Other crypto projects have also launched buyback initiatives. World Liberty Financial proposed using all of its protocol fees to repurchase and permanently destroy its WLFI token, which has dropped in value since its launch. Meanwhile, Pump.fun spent $66.5 million on its PUMP token buyback program, which has resulted in nearly 30% monthly gains [1]. These efforts underscore a growing trend among crypto projects to use buybacks as a mechanism to stabilize and increase token value.

Source:

[1] Sky's $75M buyback plan boosts SKY token 8% in 6 months (https://cointelegraph.com/news/sky-75m-token-buyback-plan-sees-8-percent-gain)