SushiSwap Completes 7th Weekly Buyback of 13,318 SUSHI
SushiSwap has completed its 7th weekly buyback, purchasing 13,318 SUSHI at an average price of $0.22 and adding them to the Strategic Reserve, bringing the total amount purchased to 64,015 SUSHI.
The funding source is 4% of protocol fees and perpetual contract trading fees. This week's purchase amount is nearly double that of the previous week (6,804 SUSHI at an average price of $0.24), marking the highest weekly total since the program's inception.
This mechanism originates from the Strategic Reserve and revised buyback plan approved by DAO governance voting in early September. Weekly SUSHI purchases started on September 7, while monthly xSUSHI buybacks began on October 1. xSUSHI is a staked form of SUSHI that historically shared protocol fees but had its distribution paused at the end of 2022 due to treasury shortages.
The buybacks lock the tokens purchased from the market into reserves, rather than selling or distributing them immediately. Execution is based on a fixed percentage allocated from fee income, with the scale fluctuating according to protocol trading fee revenue. A total of 64,015 SUSHI has entered the reserve, creating sustained buying pressure.
A portion of the protocol fees and perpetual fees is being converted into SUSHI buy orders flowing into the reserves. Sellers are market order providers, while buyers are the protocol itself, creating structural demand driven by events. The expansion of reserves benefits holders and the long-term stability of the protocol, while the circulating supply of tokens is relatively pressured, with some external selling pressure absorbed.
Source: Public Information
ABAB AI Insight
SushiSwap paused xSUSHI fee sharing at the end of 2022 due to treasury shortages, leading to long-term community discussions about using the treasury for buybacks. In August-September 2026, the DAO institutionalized weekly market purchases and monthly xSUSHI buybacks through the Strategic Reserve and revised buyback proposals, shifting from one-time discussions to fixed fee ratio execution, changing the previous interruption in value return.
The capital path directly uses 4% of protocol fees and perpetual fees for market purchases of SUSHI and locking them in reserves, rather than distributing them immediately to stakers or for operational expenses. The motivation is to rebuild sustained buying pressure to support token demand while reducing short-term selling pressure through reserve holding rather than immediate selling. Execution is linked to fee income, with scale naturally varying with trading volume.
Similar cases include other DeFi protocols (such as some DEXs) directing fees towards token buybacks and burns or reserves to address trust gaps after historical fee sharing pauses. Currently, SushiSwap is transitioning from interrupted fee sharing to structured value return, with weekly purchases executed for seven consecutive weeks and a noticeable increase in weekly scale.
Essentially, this is a reconstruction of capital concentration and value return mechanisms. The protocol is re-concentrating fee income that could have flowed out into its own token buy orders, with the mechanism creating predictable demand through fixed percentage allocations, while reserve holding changes the path of tokens from circulation to locking, reducing immediate selling pressure and gradually accumulating supply controlled by the protocol.
ABAB News · Cognitive Laws
Fees become buy orders, selling pressure becomes reserves
Fixed ratios are more sustainable than one-time commitments
The larger the reserves, the relatively less circulating supply