According to @MilkRoadDaily, protocols are turning on token buybacks with WLFI ($WLFI) cited as an example, and these reduce circulating supply and reward long-term holders only when backed by real cash flow, source: @MilkRoadDaily. The author adds that profitable protocols recycle fee revenue into ongoing buy pressure and gradual supply contraction, while unprofitable ones simply drain their treasuries, source: @MilkRoadDaily. For traders, the author flags fee-funded, sustainable buybacks as signals of product-market fit and real revenue, whereas treasury-funded buybacks are a clear red flag, source: @MilkRoadDaily.