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.