Buybacks and Burn
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The buyback and burn mechanism is a strategic monetary policy tool commonly used in tokenized ecosystems to reduce circulating supply, introduce deflationary pressure, and reinforce long-term token value.
By decreasing the number of tokens available in the market, it introduces scarcity, which can positively influence token and protocol value over time.
This document outlines the rationale, mechanics, and long-term goals of ZeroLend’s buyback and burn approach, followed by a report on the first execution of this strategy.
ZeroLend’s buyback and burn strategy is an initiative for sustainable and deflationary tokenomics. The long-term objective is to:
• Reinforce the token’s value proposition by reducing the total and circulating supply over time
• Drive protocol-level demand for the ZERO token as a utility and governance asset
• Maintain full transparency by documenting each buyback and burn event on-chain
As the first step in this strategy, ZeroLend executed its inaugural buyback and burn event, permanently removing 0.1% of the total ZERO supply from circulation.
The transaction was carried out on Mar 07, 2025 and is publicly verifiable.
All future buybacks and burns will be documented on our Twitter account.