Sky Protocol Deploys Major Buyback Initiative: 130 Million SKY Tokens Acquired in January

Sky Protocol has executed a substantial capital deployment strategy, committing 8.5 million USDS in January 2025 to acquire 130 million SKY tokens. This strategic buyback represents a significant move in managing the project’s tokenomics and reinforcing market confidence in the protocol’s economic foundation.

Strategic Capital Deployment for Token Buyback

The buyback initiative demonstrates Sky Protocol’s commitment to supporting token value and creating scarcity within its ecosystem. By systematically repurchasing SKY tokens from the market, the protocol employs a proven mechanism to stabilize supply dynamics and enhance long-term value proposition for holders.

According to PANews, the buyback program’s execution began in February 2025, marking the start of what appears to be an ongoing commitment to token management. The scale of this repurchase effort—utilizing over 106 million USDS cumulatively since the program’s inception—underscores the protocol’s confidence in its fundamentals.

Cumulative Buyback Progress and Market Response

The total USDS deployed for token repurchases has exceeded 106 million as of recent reports, signaling a consistent and substantial allocation of resources toward this buyback strategy. This cumulative commitment represents one of the more aggressive token management approaches in the DeFi space, positioning Sky Protocol among projects prioritizing direct shareholder value creation.

Each buyback cycle reduces the circulating supply of SKY tokens, creating upward pressure on valuations when combined with growing network adoption and utility expansion within the Sky ecosystem.

Current Market Performance and Outlook

As of February 2026, SKY tokens are trading at $0.07, reflecting the ongoing market dynamics influenced by protocol developments and broader market conditions. The consistent buyback program provides a structural support mechanism that distinguishes Sky Protocol’s approach to long-term tokenomics management.

This buyback news highlights a strategic pivot toward more aggressive capital allocation for token support, a trend gaining traction among mature DeFi protocols seeking to align incentives with their communities and demonstrate tangible commitment to sustainable growth.