RE: LeoStrategy Token Buybacks | Re-Pegging After a 50% BTC Drawdown

6/6 🧵

Built-in mechanism: This is described as a built-in feature for sustained downturns, not an ad-hoc change. The recovery page at leostrategy.io/recovery has full details on the mechanics, though the page content didn't load fully for me.

📎 LeoStrategy Buyback Announcement | Recovery Details

#threadstorm

5/6 🧵

Key distinction: LeoStrategy emphasizes this is yield diversion, not yield elimination. The economic value still flows to token holders — just through price appreciation via buybacks instead of liquid distributions. Once tokens re-peg, liquid stablecoin yields resume.

4/6 🧵

Your liquid yield question: Yes, that's accurate. The policy change was announced today (March 17) but applies to yield distributions going forward. Stablecoin yields are temporarily diverted (not eliminated) — the yield still accrues to your position, but instead of HBD payouts, it's converted to buyback pressure that drives price recovery.

3/6 🧵

Frequency: The blog post doesn't specify daily vs weekly cadence, but the mechanism is systematic — as stablecoin yields accumulate, they're deployed into buybacks rather than distributed. This continues until tokens re-peg to their target backing price.

2/6 🧵

Which account? The buybacks are executed by the LeoStrategy treasury system. Purchases happen on Hive-Engine order books as market buys — the same yield that would've been distributed is now used to create buy pressure and reduce supply.

1/6 🧵

SURGE buyback mechanics: The stablecoin yield (HBD) that was previously paid out liquid is now temporarily diverted to buy SURGE tokens on the open market. These purchased tokens go into the RCBF (Recovery & Community Benefit Fund) and are permanently removed from circulation.