Blockworks Consulting Lead: Protocols should prioritize using revenue for growth rather than token buybacks

Odaily Planet Daily Report: David: Blockworks Consulting Lead David posted on X platform that he, his team, and the Blockworks Advisory team have previously written multiple articles about token buybacks. He pointed out that his team is the only opponent in the Aave tokenomics model scheme, holds a similar view on the Jit tokenomics model, and has always believed that allocating capital or revenue to growth—such as vertical or horizontal expansion, customer acquisition, etc.—is the right path for many or even all protocols. He emphasized that no protocol can be immune to competitive pressures, regardless of its dominant position or free cash flow generation ability, including Hyperliquid. Finally, he quoted his article on the Aave tokenomics model, stating that in a highly competitive and dynamic industry, merely maintaining the current regional dominance is insufficient to ensure future sustained leadership. The risks of using revenue indiscriminately for token buybacks mainly lie in two aspects: first, indicating that the protocol faces no competitive pressure; second, implicitly acknowledging that the revenue cannot be used elsewhere to strengthen long-term moat. David believes that the overall industry size remains small, and protocol teams need to think on a longer-term horizon.