Solana DEX Raydium’s cumulative token buybacks surpass $190 million

Raydium, Solana’s largest decentralized exchange by volume, has cumulatively allocated $190.4 million to buy back RAY tokens, the protocol announced Wednesday. The platform allocates a portion of its revenue to repurchase RAY tokens from the open market.

The move brings Raydium’s cumulative buyback total to 69.1 million RAY, or about 25% of the circulating supply, according to data shared by contributor 0xINFRA via X.

RAY last traded near $2.99, giving the token a headline market capitalization of around $800 million, The Block’s price page shows. However, a float-adjusted figure would be closer to $593 million after accounting for repurchased tokens.

Raydium initiated systematic buybacks in early 2024 as part of a broader plan to return revenue to token holders while reducing net issuance through liquidity incentives. Approximately 1.9 million new RAY emissions occur annually, while the protocol reported generating $9.1 million in gross revenue in May alone, which annualizes to more than $109 million if the fee trend continues. Of that, $4.8 million went toward May buybacks, implying an annualized pace of roughly $57.6 million in capital returns. The Block's data dashboard shows that Raydium has one of the highest monthly fee intake across DeFi.

At current prices, this translates into a direct yield of approximately 13.5% for all holders, before factoring in any token price impact, according to a valuation analysis shared by 0xINFRA. RAY is functionally deflationary, with programmatic buybacks offsetting emissions, and the pseudonymous developer has been added. 

Growing trend

Critics argue that token buybacks can be cosmetic, but Raydium’s strategy supposedly differs from other protocols that burn through reserves to remove supply from the market. The contributor stated that revenue is increasing while supply is shrinking, and treasury assets — approximately $60 million in SOL, USDC, and other tokens — provide an operational cushion.

The buyback program signals a broader trend in DeFi as more protocols adopt a corporate‑style capital allocation to reward holders. Solana memecoin launchpad Pump.fun recently initiated a token repurchase spree as part of a possible revenue-sharing strategy, The Block reported. Perp DEX Hyperliquid also features a buyback structure, allocating approximately 97% of trading fees to repurchase its native token, HYPE.

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