Bankless · Monday, August 3, 2026
Spencer and Aleks from Blockchain Capital discuss the enduring effectiveness of the buy-and-burn model for token value capture, noting its adoption by modern projects like Hyperliquid and Lighter. They acknowledge past criticisms of capital inefficiency but highlight its current undefeated status in aligning token holders with project success, especially in the absence of clear token holder rights.
“But it's undefeated, dude. Here we are in 2026, and the best projects are still doing the buy and burn model.”
“All of that was overthinking it. Buy and burn works well. I understand the like pushback from people of like why it could be capital inefficient to do so. But I think it's the most logical model today because token holders, like unless we get Clarity Act passed, like the rights of token holders are not very clear.”
“And so they'd say, listen, I'd prefer that you just, you stake a flag in the sand and you say that this is what we're going to do forever. We're going to buy back and burn. And that at least provides some level of certainty, right?”