Hello everyone, how are you all? I hope everyone is doing well.

Today we will learn about the difference between PUSS Buyback VS Burn.
And how they work, we will learn in detail, so without any delay, let's start-

In crypto, we often hear these two words, Buyback & Burn.
However, many of us may not even know what the actual differences between these two are.

So today, we will try to understand the topic very simply using the example of PUSS Token.

🔄 First, what is Buyback?

Buyback means when a Project buys its own Token from the market.

For example, suppose a Project buys PUSS Token from the market. Then those Tokens will come back to the Project again.

To put it more simply:

Project → Buys PUSS → Tokens are taken from the Market

And this is basically called Buyback.

Source

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🔥 So, what is Burn?

Burn is a little different. But it is very simple, like this-

Burn means sending Tokens to a Wallet Address from where those Tokens can never be brought back, meaning intentionally making your own Token unavailable.

And as a result, the Tokens will be Permanently removed from circulation.

For example-

PUSS Token → Burn → Will not return to circulation 🔥

This can reduce the total circulating supply.

🐱 PUSS Buyback & Burn

PUSS also has Buyback & Burn in its ecosystem plans.

According to PussFi's information, a portion of the income of Steemit Content Creators is being used for the PUSS liquidity pool and Buyback & Burn.

According to PUSS Tokenomics, 5% of the income of Steemit Content Creators in the PussFi Community is planned to be used for PUSS Token buyback and burn. And the total supply of PUSS Token is 1 billion Tokens.

However, the process is something like this:

Income → Buyback → PUSS Token → Burn 🔥

In simple words, the Token is first being bought and then it is being Burned.

Source

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🤔 So, does this mean the price of PUSS will definitely increase?

The answer is: No.

Here, one thing is very important. It is true that when Tokens are Burned, the supply can decrease, but it is not right to believe that the Token price will definitely increase just because the supply decreases.

Along with this, Liquidity, Demand, Trading Volume, Community, and the overall situation of the Crypto Market are also very important factors.

To put it more simply-

Buyback = Buying Tokens

Burn = Permanently removing Tokens

Using these two together can play a role in the supply management of a Token.

However, yes, to understand how much PUSS's Buyback & Burn is actually happening, checking Official Updates and On-chain Data is the best decision.

So, what do you think—how important will Buyback & Burn be for a Token's Ecosystem?

Don't forget to share your opinion in the comments.

I am ending here for today. Stay well, everyone.