Strategic Shift Toward Token Scarcity

The current analytical landscape highlights a strategic pivot by major protocols like Ethena and LayerZero towards mechanism-driven price support through buybacks/burns rather than mere ecosystem expansion.

Key Strategic Arguments:

• Ethena (ENA): The Risk Committee has approved using all net ecosystem revenue for regular open-market buybacks으로revisiting wayto sustain value pending holder approval; additionally, plans involve buying back locked tokens from early investors to mitigate future monthly unlock pressures và eliminate constant selling fearings.
• LayerZero ($ZRO): Following the announcement of its ATLAS platform—which includes spot trading, stocks, bonds, etc.—the protocol intends to direct 75% of commission earnings into $ZRO purchases and burning. Such moves have already triggered immediate market reactions, such as an initial 30% price spike even if temporary pullbacks occur.

Counter-points / Risks or Bearish Signals:

• Post-announcement volatility may lead to short-term retracements in assets like $ZRO after any sudden pump caused by news adrenaline.
• For projects unable to successfully implement these fee-capture mechanisms, there remains a risk that existing supply pressure could outweigh new demand unless long-term sustainability is proven via continuous enough volume properly distributed towards burns/buybacks.

Bottom Line:
The focus for major protocols is shifting toward aggressive deflationary mechanics designed to absorb investor sell pressure through systematicly driven repurchase programs.

! DYOR (Do Your Own Research)