Sky, the protocol formerly known as Maker, has successfully spent $75 million on token buybacks since February 2025, resulting in an 8% price gain for the SKY token over the past six months.
Sky’s Strategic Buyback Program
Sky launched its token buyback initiative on February 24, 2025, aiming to reduce circulating supply and stabilize token value. The platform uses its stablecoin USDS for these purchases, with August alone seeing 5.5 million USDS spent to repurchase 73 million SKY tokens.
Since its inception, $75 million USDS has been allocated to buybacks, with the largest single-month expenditure being March at $18.31 million, according to Sky’s dashboard.
Impact on SKY Token Price
When the buyback program started, SKY was trading slightly above $0.063. Today, it stands at $0.0685, marking an 8.1% increase over six months, based on CoinGecko data.
The token peaked at $0.096 in late July, nearing its all-time high of $0.10 in December 2024, before retreating with the broader market. However, it did not fully rebound in August like some competitors.
In comparison:
- Uniswap (UNI) rose 6% in the same period.
- Aave (AAVE) gained a strong 25.8%.
Token buybacks reduce circulating supply, which creates scarcity and can support price growth. This approach is increasingly common among DeFi projects aiming to strengthen token value and reward holders.
Industry Trend: More Projects Adopt Buybacks
Other crypto projects have also joined the buyback wave:
- World Liberty Financial announced a token buyback and burn program, pledging to use all protocol fees for buybacks.
- Pump.fun, a memecoin creation platform, launched a similar strategy in mid-July, already spending $66.5 million, which helped its token surge 70% from its all-time low.
Sky’s buyback program demonstrates the growing importance of tokenomics strategies in crypto. As buybacks become a standard mechanism, investors may continue to see price stability and potential growth from projects adopting this model.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.