XIP #28: Q4 & Q1 XBG Buybacks

Summary

In Q4, we executed $500,000 in buybacks out of our $1-2 million commitment. However, the impact was limited due to weak market conditions, as most buybacks happened on red days and were quickly sold into, which reduced their effectiveness.

Given the current market conditions, we’re proposing to move a minimum of $500,000 of the remaining commitment into Q1 2026, when we expect market conditions to be healthier.

Given the short amount of time left in Q4, we believe that optimising the buyback/yield mechanism for Q1 2026 will also be more effective, as further described in the community suggestions below.

Voting Outcomes

If approved, we will move the remaining $500,000 from Q4 to Q1.

If rejected, we will execute another $500,000 before the end of 2025 to stick to our initial commitment.

Why Q1

Q1 presents a better window for buyback execution. Market structure suggests a likely relief bounce or trend reversal as Bitcoin stabilises and altcoin sentiment improves. At the same time, we're launching FanBase Copilot, Propr, and XBG on Hyperliquid, three catalysts that will help us capture momentum and attract new buyers, hence maximising the impact of the buybacks.

Deploying the additional $500,000 during better market conditions allows us to outperform rallies, attract new investors, and create visible momentum.

Community Questions

“Don’t you think postponing the buybacks lowers the trust community members have in the team?”

We don't take this proposal lightly. Pausing the remaining Q4 buybacks will frustrate some of you, especially after our earlier commitments, but our job is to allocate capital where it drives results. The first batch showed negative returns, and spending a minimum of another $500k on the same playbook isn't responsible management. This was our first quarter running buybacks, and we're still learning what works. We'll use this time to refine the model and incorporate the community feedback mentioned below.

Future Buybacks

It is worth noting that the buybacks in Q4 were an exception to our 150% OPEX rule. This states that we use all revenue generated above 150% of operational expenses to buy back XBG. Following the completion of the current buybacks, we will likely wait for our revenues to exceed 150% of operational expenses before executing additional buybacks.

Community Suggestions

Following the brief we posted in the Prometheus Chat this week, a community member (Rickky Bobby) brought up the idea of distributing the buyback funds to pledgers as USDC or BTC instead of buying XBG with them. We will explore this option amongst others to make buybacks and value sharing with our holders more effective in the future. All options that consist of some form of yield are subject to legal concerns and will be evaluated carefully.

The Decision

If approved, we will move the remaining $500,000 buybacks to Q1, deploying capital to amplify momentum during our strongest product cycle and improved market conditions.

If rejected, we buy back $500,000 of XBG before the end of 2025, bringing our Q4 total to at least $1,000,000.

Either way, we remain committed to bringing tangible value to holders and putting the decision-making power in their hands.