ZBCN 456M BUYBACK REVEALED: Was I Wrong About the Burns?

[00:00:00]Zebec Network has repeatedly announced that their ZBCN buyback is funded by its revenue of its card products. But after looking at ZBCN's total supply on Solana scan, many holders and critics are asking the same question, where the burns? Where can you verify it on the scan? It currently doesn't show that.

[00:00:19]The answer is not as clear as you think.

[00:00:22]Zebec has currently bought back approximately 456 million ZBCN, but those tokens have not been permanently destroyed. The current buyback program purchases ZBCN from the open market and currently holds it within the Zebec's treasury structure. While the original burn mechanism has been currently paused since 2024. And this information was kind of sparked up from Zebec's latest X space. I think everyone within the Zebec community thought there was burns because they've repeatedly said buyback and burn mechanism. They have said that in their blog posts. Simon has said that in interviews. We all thought that there was a burn. But me being in Canton, you can check that Canton actually has burns. And you can check that and verify that on the Canton scan on chain. But currently with Zebec, if you look at Solana scan, the total supply is still close to 100 billion token. So if they burns, it means that they permanently destroy the supply. And you can check that barely any has been destroyed. So you probably have a big question you want to be answered. What is the point of buying millions of ZBCN if you're not currently going to be burning them?

[00:01:29]Where are those tokens being held? Why did Zebec stop the burns? And can burns permanently come for a return? But before we go any further, guys, this is never financial advice. Please do your own research as crypto is risky and you can lose it all. I do not tell anyone to buy, hold, or sell ZBCN. I simply give you the information so you can make that decision yourself. And if you don't have a cold storage, guys, I can offer you a 10% discount using the code word Starro on Tangem and also the upcoming OneKey.

[00:01:57]And for whatever reason you will be emotional today and you want to buy or maybe sell ZBCN in the bear market, well, don't do on an exchange. I would recommend using on a OneKey product.

[00:02:08]Why? Because on an exchange, they can freeze your account, they hold your private key. With OneKey, you obviously have your private key because it is a cold storage. And if you want to have the benefits of OneKey, well, you can have access to Hyperliquid's perpetuals.

[00:02:23]You can have access to Ondo's tokenized stocks. You can have access to over 400 applications and DEXes like Uniswap, Orca, etc. If one DEX goes down, you can simply use another one. Get the lowest fees. Not your keys, not your crypto.

[00:02:38]Don't get your funds frozen. And if you want to sell ZBC for whatever reason, please do it on a OneKey. It's better for you. 10% discount. Looking directly at Zebec's latest explanation, [music] the company says its reoccurring ZBCN buyback program is funded by operating revenue generated across enterprise payroll, Zebec [music] cards, stablecoin payments, and financial infrastructure.

[00:03:00]Zebec's published dashboard reports approximately 456 million ZBCN repurchased after the token migration across 10 [music] completed buyback rounds. However, the same article confirms that the current program does not permanently burn the purchased tokens. Zebec says the original initiative included periodic burns, but the DAO approved the ZIP proposal in early 2024, pausing the burn mechanism while allowing reoccurring market buybacks to continue. The precise description is therefore approximately 456 million ZBCN repurchased, not 456 million permanently removed from the token supply. Now, this explains a lot and this explains why people became confused about the situation. Simply, the word buyback and burn was previously stated in the same strategy. But it's important to note that they both describe different actions. So, the back network is still using its revenue from its card products to purchase CBCN from the open market, but it is not currently taking those purchased tokens and permanently destroying them. The buying activity is real, but it should not be described as permanently reducing the total supply. So, you're probably wondering as an investor, where are those purchased CBCN currently being held? So, the back says repurchase tokens are held partly inside a designed on-chain buyback treasury wallet and partly with uphold institutional. The official on-chain wallet address is this on the screen, which the back previously published so the community could follow activity connected to the program. The important limitation is that this wallet cannot show the full cumulative program by itself because the back says part of the CBCN is held through uphold institutional. So, our scanner can show what enters and leaves the disclosed on-chain wallet, but it cannot provide the same public visibility into assets held through an institutional custodian.

[00:04:52]So, it is clear that the current buybacks have not disappeared, but not every purchased token can be followed through the same Solana wallet. As a result, this can create a transparency difference. The current disclosed wallet can give CBCN holders a way to disclose what's going on on chain, while the portion held at uphold institutional depends on the back's way of reporting.

[00:05:14]It also means the balance inside one wallet should not be compared with the current 456 million CBCN figure. So, this is a very critical point of the video and I do recommend watching to the end. So, we need to know what is the difference between a burn and a buyback because they both do different things.

[00:05:31]On Solana, permanently burning an SPL token requires a burn or burn checked instruction. That instruction destroys the tokens [music] controlled by the account and reduces the supply recorded by the token mint. Simply purchasing CBCN and sending it to another treasury or custody account does not reduce the mint supply because the tokens continue to exist. The current Zcash process is operating revenue being used to purchase ZBCN, followed by the tokens being retained as part of the treasury strategy. That can create open market buying demand and may reduce the amount of ZBCN immediately available while the treasury continues holding it. But, unlike a burn, the [music] supply reduction is not permanent and the tokens could theoretically be used again subject to treasury decisions and governance. So, hang on a second. Let's not panic here. This does not mean that the buybacks have no purpose. Zcash is currently directing its revenue generated from its products back into the ZBCN market rather than funding every purchase from an existing allocation. But, ZBCN holders should understand what they are receiving. A buyback [music] creates purchasing activity and treasury accumulation. A burn permanently removes the total supply. Zcash is currently carrying out the first mechanism, but simply not the second because you can verify that on Solscan. There is no burns activity going on. And looking at how Canton actually has burns, you can check that activity on the scan, but there's no activity on the Solana scan. So, you probably have a big question that you want to be answered. Why did Zcash pause the burns in the first place? The original ZIP or proposals said Zcash wanted to redirect instant card revenue away from the previous buyback and burn structure and towards platform growth.

[00:07:13]The company listed stable and payroll integrations, additional payroll systems, card [music] upgrades, treasury products, and multi-chain expansion among the areas requiring greater investment. Zcash's new article says pausing the [music] burn mechanism enabled more treasury resources to support product development, strategic acquisition, ecosystem expansion, and longer-term network growth. In simple terms, a DAO chose to prioritize building the [music] business rather than permanently destroying the revenue or assets that could be used to finance that expansion. Zebec also says the decision may not be permanent. The Dow expects to evaluate by the end of 2026 whether growth across the network, treasury performance, and market conditions could support a new proposal reintroducing token burns alongside the existing buyback program. So, the answer you're probably waiting for, are Zebec currently burning the tokens through its buyback program? Well, that answer is [music] no. Zebec reports approximately 456 million ZBCN repurchased, but those tokens are currently being held in a disclosed treasury wallet and uphold institutional. The burn mechanism was paused through its governance [music] vote. So, more of those resources could be directed through its payroll card products, acquisitions, and Zebec ecosystem infrastructure, probably the ZBCN super app. So, the real question is whether this strategy can produce long-term growth for its holders to justify why Zebec is currently holding the tokens in a treasury wallet rather than destroying them. The payroll volume, the super app adoption, the card revenue, and the expansion of its ecosystem could strengthen the revenue and its future buybacks in the future.

[00:08:51]This seems like Zebec is building their foundation first [music] and then focusing on their burns and adoption later on. But as we can see with the definition of a burn from Solana and the scan, only an actual Solana burn instruction would permanently reduce the supply by definition of what is a burn on Solana. [music] Zebec says that the burns could be reconsidered by the end of 2026. Until that decision is made, the ZBCN holders should say what it actually is, a revenue-funded ZBCN buyback program, not a buyback and burn program.