Token buyback refers to the practice where a project or company purchases its own tokens from the market. This can be done for several reasons, primarily to increase the token’s value and provide liquidity. By reducing the total supply of tokens available in the market, buybacks can create upward pressure on the token’s price.These buybacks may also signal to investors that the project is financially healthy and believes in its long-term potential. It demonstrates confidence in the token’s value, which can boost investor sentiment.Additionally, some projects use buybacks as a way to reward loyal holders. After purchasing tokens, they might burn them, permanently removing them from circulation. This action can further enhance the scarcity of the token, making it more valuable over time.Token buybacks can be planned events or executed in response to market conditions, and they can vary in scale and frequency. Overall, they are a strategic tool used by projects to manage their token economy and build stronger relationships with their investor community.