When evaluating a blockchain protocol's financial health, the difference between consistent token buybacks and continuous token selling is pretty stark. A protocol that regularly purchases its own tokens tends to support price stability and demonstrate confidence in its long-term value proposition. This mechanism signals to the market that the project is serious about managing its token economics. In contrast, a protocol that's constantly offloading its own tokens sends mixed signals—it can create selling pressure, dilute hodler confidence, and muddy the waters on actual ecosystem value. The choice between these two approaches often reflects the protocol's broader philosophy: is it focused on sustainable growth and holder alignment, or is it purely extracting value in the short term? Most robust protocols that have weathered multiple market cycles tend to favor buyback strategies paired with thoughtful tokenomics design.