Systematic risk occurs due to macroeconomic factors. It is also called market risk or non-diversifiable or volatility risk as it is beyond the control of a specific company or individual and hence, can’t be diversified. All investments and securities suffer from such a type of risk. One can’t eliminate such a risk by holding more shares.

Buyback as a concept is nothing new. It’s a simple way to remove digital assets from circulation, thus adjusting both their availability and overall value.

Inflationary tokens have no limit to how many units are in circulation. The supply of inflationary tokens becomes greater than the demand over time. As a result, the tokens start to lose their value with supply and demand discrepancies (Staff, 2022) [1] .

Deflationary tokens are a type of crypto token whose value tends to decrease gradually after a certain point in time called deflationary tokens. Buyback and burn and Burn on a transaction are the two strategies, that keep on restricting the market from getting prevented from over-flooding (Staff, 2022) [1] .

In the simplest terms, decentralized finance (DeFi) is the umbrella term for financial applications that operate on a decentralized network. This could be something as simple as decentralized lending or borrowing, but can also include more complex products and services like decentralized exchanges, derivatives, and insurance products (Blockzeit, 2022).