Lorenzo has crossed a line that a lot of protocols talk about but rarely reach. BANK buybacks are no longer a plan or a forum post. They are happening in real time, funded by actual vault fees.
Every time someone uses a Lorenzo vault and pays management or performance fees, part of that money is now used to buy BANK from the market. Those tokens do not sit in a treasury waiting for a decision. They either get burned or sent directly to veBANK lockers. Simple flow. Easy to track.
This matters because it ties BANK to usage, not speculation.
When vault activity increases, fees increase. When fees increase, buybacks increase. That means demand for BANK grows only if the product itself is doing well. There is no extra inflation to fake incentives and no new emissions trying to keep attention. The protocol earns first, then rewards.
Long-term holders benefit the most. People who lock BANK into veBANK are not just voting anymore. They receive a share of the buybacks. The longer the lock, the larger the share. This pushes behavior in one clear direction: commit long term or step aside.
Supply is already tightening. Unlocks that would normally hit the market are being absorbed by buybacks instead. Instead of sell pressure, there is a steady bid coming from protocol revenue. That changes how the token behaves, especially during slow market periods.
What makes this feel different from older buyback stories is how boring it is. There is no hype schedule. No surprise announcements. Just a percentage of fees routed the same way every time. Anyone can watch the wallet and see it happen.
Of course, this only works if the vaults keep performing. If users leave or yields dry up, buybacks slow down. There is no safety net hiding that reality. BANK now rises or falls with the health of the product itself.
That is the trade-off, and it is an honest one.
Lorenzo is not trying to prop up its token with narratives. It is letting vault activity speak for itself. If people use the protocol, value flows back to holders. If they do not, nothing artificial steps in.
Over time, that kind of structure tends to favor protocols that actually build things people want to use.
BANK buybacks are not about short-term pumps. They are about turning vault revenue into steady pressure on supply and consistent rewards for committed holders.
That is not flashy, but it is how real value compounds.
