We know what you're thinking: "token buybacks, again?"
We hear you. We've seen the schemes with opaque deals and actions no one can confirm. Were those tokens really bought back from the market, or was an insider moving a bag?
So this time it's different. Shape brings buybacks into the bright light of onchain, where they belong. Shapers don't have to hope that someone, somewhere, is actually doing what they promised, as now we have code that proves it.
The $SHAPE Buyback contract is intrinsically tied to the network and shares in its success.
HOW IT WORKS
The Buyback process runs on repeat and is powerfully simple:
- A share of all sequencer fees (+ other onchain sources) are directed to the Buyback contract
- The contract accumulates a growing pot of $ETH
- Any $SHAPE holder can, at any moment, swap a fixed amount of tokens for the entire pot
- The swapper receives the $ETH, while the $SHAPE is split between @structura (the DUNA of the Shape protocol) + a burn address
No middlemen, no discretionary timing, no trust assumptions beyond the code.
All permissionless, all transparent, all open.
Now this doesn't mean the Buyback can't adapt. Governance will control updates to the contract parameters, including the rate $ETH becomes available to swap and the set amount of $SHAPE required to make that swap happen. These critical levers minimize "heat loss" and maximize efficiency, making the Buyback truly scalable.
ONCHAIN ONLY
The Buyback contract solves the coordination problem that plagues other buyback mechanisms: who decides how much, and when?
All centralized buybacks create information asymmetry, and whoever controls the timing can use that as an unfair advantage. Even if the team has good intentions, the design breeds suspicion, as why do it offchain when onchain exists?
The Buyback contract gives everyone an equal playing field. The pot fills according to protocol rules, set by $SHAPE governance. The swap happens when executed onchain, decided by $SHAPE holders.
SHAPING FLYWHEELS
The Buyback will be primarily fueled by sequencer fees, so:
More network activity = More sequencer fees = More $SHAPE buybacks
The bought back $SHAPE is then programmatically split between a burn address (40%) and Structura (60%). What happens to the $SHAPE Structura accumulates? Governance decides.
We believe the ultimate goal should be full ecosystem alignment, so there's probably a creative flywheel here. Maybe those tokens can be redistributed as growth incentives, builder rewards, product bootstrapping…the list goes on.
Whatever the decision, with the Buyback, everyone shares in Shape's success.
(FEES + GASBACK) ➡ BUYBACK
This system is designed to scale for the future. To help further that goal, a new decentralized version of Gasback is cooking which will be tied closely to the Buyback.
Gasback v2 is coming very soon, but we mentioned other onchain sources going to the Buyback too. This will include upcoming projects:
- Fees from the address identity service, ShapeNames
- Fees from the canonical Uniswap deployment, ShapeSwap
- A share of royalties from secondary sales of the $SHAPE-coded The Ecstasy of Maximals NFT collection
- + more - also soon™
Plus there's the $ETH anyone decides to direct to the contract themselves. This may be from an artist to show their love for Shape, a platform to align themselves with $SHAPE holders, or just anyone deciding to boost the contract for the benefit of every shaper. Maybe governance will notice these actions too.
Buybacks: shaped. What gets shaped next?