Buyback mechanisms have proven quite effective at smoothing out market swings, as demonstrated during the 2023 market cycle. When projects implement structured repurchase programs, they help stabilize token prices by absorbing selling pressure at key moments. This supply-side intervention can meaningfully reduce volatility—especially compared to markets relying solely on organic trading dynamics. The data from last year showed some clear examples of how well-designed buyback rails cushioned against sharp drawdowns.