Sky, formerly known as Maker, has invested $75 million in a token buyback program over the last six months, resulting in an 8% increase in its SKY token price since February.
Initiated in late February 2025, Sky’s buyback strategy involves using its stablecoin USDS to repurchase SKY tokens. In August alone, the protocol allocated 5.5 million USDS to buy back 73 million SKY tokens, further accelerating price gains.
This initiative has brought the total buyback expenditure to 75 million USDS, effectively reducing the supply of SKY tokens in circulation and supporting its market value.
Token buybacks are a common technique among crypto projects aiming to enhance token value by limiting supply through removal of tokens from the market.
SKY Token Gains 8% Since Buyback Commencement
The buyback started on February 24, 2025, with an initial spend of approximately $4.28 million. At launch, SKY was trading at just over 6.3 cents and has since climbed over 8% to about 6.85 cents, according to CoinGecko data.
SKY reached a peak of 9.6 cents in late July, nearing its December all-time high of just above 10 cents. Post-July, it followed market trends downward and did not partake in the mid-August market recovery.
For context, tokens of peer projects like Uniswap (UNI) and Aave (AAVE) have gained 6% and 25.8% respectively since February, with notable rebounds mid-August.
Other Projects Adopting Buyback Strategies
World Liberty Financial, a crypto platform, recently announced plans to implement a buyback and burn program, dedicating all protocol fees to repurchasing and permanently removing WLFI tokens from circulation.
While WLFI token value has dropped over 16% since its secondary exchange debut about 18 hours ago, early investors who purchased at 1.5 cents still enjoy over 1,400% returns.
Another example is Pump.fun, a memecoin platform that launched a buyback scheme in mid-July. It has spent $66.5 million on buybacks thus far, seeing its token rise nearly 30% in the last month and recovering close to 70% from its all-time low in late July, according to CoinGecko.
These buyback programs highlight a growing trend in the crypto industry, where reducing circulating supply can help bolster token prices and investor confidence.
