InterLink Proposes Reverse Auction For ITL Treasury

A Community-Led Buyback Framework

InterLink Labs (@inter_link) has put forward a voluntary buyback proposal built around a reverse auction mechanism for its $ITL token. Under the framework, holders would set both the amount of ITL they wish to sell and the price they are willing to accept, while InterLink Labs retains the option to selectively repurchase tokens to grow a long-term treasury position.

The company says the structure is designed to keep the process transparent and pressure-free, with participation remaining entirely optional for every community member. Auction-based buybacks allow projects to repurchase tokens at competitive rates, helping to ensure fair pricing rather than acquisitions made at arbitrary or market-moving prices.

A token buyback sees a crypto project use its own revenue or treasury to repurchase its token on the open market, with the bought tokens then burned, locked, held, or routed to contributors. InterLink's reverse auction variant hands the pricing power to holders directly, which distinguishes it from standard open-market buyback programs.

What Happens to Repurchased Tokens

InterLink Labs is asking the community to decide the fate of any repurchased $ITL. Two options are on the table. The first would permanently burn the tokens, reducing circulating supply. The second would redistribute them to developers, ambassadors, builders, and broader ecosystem contributors.

Established buyback frameworks typically optimise for one of two primary outcomes: supply reduction, where tokens are burned or permanently removed to shrink net supply over time, or holder yield, where bought tokens are distributed to stakers or through a holder distribution mechanism, turning treasury activity into recurring returns. InterLink's proposal sits squarely within this debate, and the final direction will be shaped by community feedback before any action is taken.

The proposal will now be reviewed by the ITL Foundation alongside input gathered from the wider community. InterLink Labs operates a dual-token model: ITLG serves as the main governance and utility token with a fixed 10 billion supply, while ITL is the secondary token designated for external payments, liquidity, and treasury purposes.

The reverse auction approach reflects a broader shift in how crypto projects manage their treasuries. Across the board, whether through formal governance proposals or spontaneous investor actions, buybacks have become a key tool for crypto projects aiming to boost tokenholder value and confidence.

Sources:
OKX Learn: Token Buybacks, Scarcity, Stability, and Ecosystem Growth
Tokenomics.com: How to Design a Rule-Based Buyback Framework
KuCoin: Interlink Network (ITLG) Token Outlook