Crypto projects have spent approximately $640 million on token buybacks in 2026, marking a 17 percent increase from the same period last year. Hyperliquid and Pump.fun account for almost 90 percent of this current spend, directing revenue toward repurchasing and burning their native HYPE and PUMP tokens.
Hyperliquid allocates 99 percent of its revenue to repurchase and burn HYPE, while Pump.fun directs 50 percent of revenue toward burning PUMP. Pump.fun has removed $446.65 million worth of PUMP from circulation through this mechanism.
DeFi infrastructure protocol Spark takes a different approach, acquiring over 143 million SPK through open-market buybacks but retaining the tokens in its treasury rather than burning them. Co-founder and chief executive Sam MacPherson said the buybacks are funded by protocol surplus and aim to reward long-term participants.
The buyback strategy creates a direct market bid for tokens, linking operational success to token value. Max Shannon, senior research associate at Bitwise Europe, said buybacks and burns accrue value to tokenholders and establish a direct connection between token success and protocol adoption.
Orest Gavryliak, chief legal officer at decentralized exchange aggregator 1inch, noted that buybacks offer clarity to users. "'Bought and burned tokens' is much more straightforward," he said, compared to explaining governance rights, fee structures or protocol usage mechanics.
The practice raises questions about opportunity cost. Every dollar a protocol spends on buybacks is unavailable for hiring developers, expanding operations, strengthening the balance sheet or building new products. The industry continues to debate whether buyback schemes create lasting value or primarily enhance token perception.
