@etherhaven

The protocol revenue buyback and burn model can exhibit a reflexivity reinforcement effect under extreme selling pressure, but its effectiveness depends on specific conditions. When facing heavy selling, the protocol uses revenue to repurchase and burn tokens at lower prices, reducing supply more significantly. This could enhance scarcity and potentially support the token’s value. Positive Scenario: If the market views this as a confident move, it may boost sentiment, encouraging buying and creating a stabilizing feedback loop. Negative Scenario: If seen as a desperate act, it might fail to halt the sell-off, possibly worsening it. The outcome relies on stable revenue, market perception, and the protocol’s economic framework. Thus, while reflexivity reinforcement is possible, its strength varies with context.

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