How Backstage Token Buybacks Can Support Long-Term Value

A diagram of Backstage token buyback.

What is a buyback?

Benefits of an Asset Buyback

  1. Stock buybacks help companies consolidate the ownership of their assets.
  2. When there is not a lot of excitement in the current market, or the market is going through a natural downturn, buybacks are used to drive buying pressure, thus possibly increasing the equity value of the asset.
  3. Buybacks make companies look more financially healthy, which in turn could attract more buyers.

How the Backstage buyback works

  • Imagine a music festival, where the event organizer signed a partnership agreement with Backstage.
  • A portion of revenue from every sold ticket is used to buy back BKS tokens automatically by the smart contract. The same is true for every other revenue stream, whether it is buying drinks at the bar, buying merchandise at the festival shop, collecting NFTs used for perks and benefits, or topping up your festival pass with a VIP entrance.
  • All of the mentioned revenue streams will dedicate a percentage of the profit to the automatic buy of the BKS tokens.
Here’s how BKS token buybacks work.

What Distinguishes BKS Token Buybacks

About Backstage

References:

  1. Stock Buybacks: Why Do Companies Buy Back Shares?, Troy Segal, Investopedia, August 31, 2022. Available at: https://www.investopedia.com/ask/answers/042015/why-would-company-buyback-its-own-shares.asp

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