22h ago
1/ There’s an ongoing discussion in the @DriftProtocol's DAO about how to allocate future protocol fees.
One idea is programmatic buybacks of $DRIFT.
We think the better move, right now, is to keep those funds under team discretion rather than route them into buybacks.
2/ Buybacks tend to work best in two cases:
1) When a protocol has reached a steady, dominant position in a vertical and wants to reward holders.
2) When token supply is stable and new emissions aren’t creating sell pressure.
Neither condition fits @DriftProtocol today.
@DriftProtocol 3/ Drift is currently 5th by open interest, with plenty of innovation and distribution still required to flip and maintain dominance.
And over the next two years, a large portion of $DRIFT will unlock—making sustained buybacks less impactful.
@DriftProtocol 4/ We believe the best use of these funds is to retain flexibility and increase platform liquidity.
Capital used to regain market share from other perp DEXs or to release a successful new product line will likely create more value for token holders than buybacks at this stage.
1.99K
11
The content on this page is provided by third parties. Unless otherwise stated, OKX is not the author of the cited article(s) and does not claim any copyright in the materials. The content is provided for informational purposes only and does not represent the views of OKX. It is not intended to be an endorsement of any kind and should not be considered investment advice or a solicitation to buy or sell digital assets. To the extent generative AI is utilized to provide summaries or other information, such AI generated content may be inaccurate or inconsistent. Please read the linked article for more details and information. OKX is not responsible for content hosted on third party sites. Digital asset holdings, including stablecoins and NFTs, involve a high degree of risk and can fluctuate greatly. You should carefully consider whether trading or holding digital assets is suitable for you in light of your financial condition.