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Rod Garratt
Maarten Van Oordt
UC Santa Barbara, Vrije Universiteit Amsterdam
2025
Buyback Programs for Platform Tokens

Pledges to buy back tokens issued by platforms in decentralized finance are becoming common. This paper discusses a tractable model for the exchange rates of platform tokens that incorporates user demand, investment demand, and buyback pledges. The authors derive closed-form solutions for the valuation of tokens and the time required to fulfill the pledge.