u/Significant_Grab_173

Im new to Hyperliquid and Im trying to understand the whole buyback mechanism inside the Hyperliquid ecosystem.

Why was it designed this way?

Who benefits from the buybacks?

How do the buybacks affect price action in the short term when they happen?

How often do buybacks happen?

And most importantly, what could be the long term effect of the buybacks over the next few years in relation to the total supply?

I understand the basic idea of protocol buys token = price maybe goes up, but I want to understand the deeper mechanics and incentives behind it in a simple way.