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Why value accrual matters for tokens

Why value accrual matters for tokens
The article discusses the concept of value accrual mechanisms in the crypto market. It questions the significance of announcements about buybacks, burns, and revenue sharing in the face of price volatility. The article mentions the example of Solana DEX aggregator Jupiter, which announced a sizable buyback program, and Virtuals, an AI agent launchpad, committing to buybacks and burns. However, it also highlights that token prices can still experience significant drops despite these initiatives. The article also mentions the value accrual proposals of various DeFi protocols, including Compound, Aave, and Uniswap, and discusses the implementation and performance of value accretive mechanisms by Starknet and Gnosis. Overall, the article emphasizes that value accrual mechanisms are not a guaranteed solution but remain an important component in the success of token launches.

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