The trend of major crypto projects announcing token buyback mechanisms, which the host argues is a built-in catalyst for potential price appreciation.

The summary of the projects planning buybacks is as follows:

1. Uniswap ($UNI )

Mechanism: A "fee switch" proposal called unification aims to use a portion of the protocol's fee revenue to buy back and burn the UNI token.

Scope: This gradual rollout would cover V2 pools, select V3 pools, layer 2s, Uni Chain's sequencer fees, and V4's hooks.

Treasury Burn: The proposal also includes burning 100 million UNI from the Uniswap treasury, which would immediately cut the circulating supply by over 15%.

Impact: The combined effect is estimated to be a 2.5% reduction in UNI supply annually.

Outlook: Analysts suggest UNI could stabilize between $7 and $12 in the short term and potentially reach $15 to $20 by 2026 as the fee switch is fully activated.

2. Lido Finance $LDO

Mechanism: The project proposed an automated buyback mechanism through Nest (Network Economic Support Tokenomics).

Trigger Conditions: The buyback mechanism would activate automatically only when two conditions are met: ETH's price exceeds $3,000 AND Lido's annualized revenue hits $40 million.

Allocation: The plan has a $10 million annual buyback cap, which would reduce the circulating supply by about 1.6%.

Key Difference: Unlike Uniswap, Lido plans to add the bought-back LDO to a liquidity pool rather than burning it, meaning the tokens technically remain in existence on-chain.

Outlook: Buybacks are expected to start in Q1 2026. The price faces resistance at $1.45 but could set its sights on $2.00, especially with the potential launch of staked Ethereum ETFs.

3. Ethena $ENA

Mechanism: The Ethena Foundation proposed a fee switch to redirect part of the protocol's fee revenue toward buying back ENA.

Status: The three success criteria (e.g., USDE supply over $6B) have been met, and the fee switch is a top priority for the founder.

Incentive: Holders of the staked token, sENA, could receive anywhere from 4.5% to 15% of Ethena's revenue.

Impact: The fee switch could unlock $500 million in buyback potential (around 12% of the supply).

Outlook: The buyback mechanism could be the catalyst for ENA to reach $1.00 before year-end if it breaks key resistance at $0.40.

4. Arbitrum $ARB

Mechanism: Offchain Labs, the foundation behind Arbitrum, announced plans for "strategic buybacks" of the ARB token to add to the company's treasury.

Status: The announcement was vague, with no specific details on the amount or spending, and there have been no updates since March.

Outlook: Arbitrum is a large Layer 2, and renewed buyback plans could be bullish for ARB's price. Breaking above the $0.47 to $0.62 resistance zone could allow it to target around $1.15.

Overall Impact of Buybacks

The host concludes that while buybacks are generally bullish and help projects stay relevant during market fear, their true impact depends on several factors:

Transparency of the plan.

Whether the purchases represent a meaningful share of the circulating supply.

The most important factor is whether the tokens are burned (removed from circulation permanently) to prevent a future risk of them being sold from a treasury.

Source Video URL: http://www.youtube.com/watch?v=wywIDm0pWWk