Frax Finance founder Sam Kazemian expressed support for a June 16 proposal by cryptocurrency investment research firm Ouroboros Capital to optimize token buyback strategies. In this strategy, the project buys and burns the same amount of FXS within a predetermined timeframe, regardless of any price fluctuations. The program provided $20 million in funding for this.

The proposal proposes that when the FXS price falls below $5, a time-weighted average price (TWAP) buyback worth $1 million will be initiated. If the price slides further below $4, it is proposed to initiate a 1-month buyback of an additional $1 million. The key premise here is to buy more FXS tokens for subsequent burns as the price falls further.