Jito Unveils $1M Buyback to Boost Solana Liquidity
The $1 million buyback is expected to stabilize the JTO token price by utilizing the TWAP mechanism. Market analysts show varying responses, focusing on both the positive governance changes and ongoing liquidity concerns.
The financial outcomes could be seen with projected annual revenue of $15 million from new plugins in 2025. Historical data indicates similar events have led to short-term price stabilization but long-term price pressures remain due to unlocks.
Past Buybacks Yielded Mixed Results for Token Stability
Past buybacks and governance upgrades, following large token unlocks, often resulted in JTO price drops. The market witnessed a 58% decline post-November 2024 despite strategic buybacks, highlighting potential risks inherent in frequent token unlocks.
Experts suggest the recent buyback could transform community incentives through increased DAO control. However, caution persists among analysts due to continued sell-off threats, noting the $2.50 resistance level may challenge future price gains.
"The recent buyback program and DAO fee share increase are expected to positively impact JTO liquidity and community trust, but the market will closely observe how supply unlocks influence price stability." - Changelly Editor
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