Buck Labs Launches BUCK Token, Backed by Strategy Shares

TL;DR

• Buck Labs has launched its savings yield-baring token dubbed BUCK.

• The token is backed by Strategy shares and offers rewards targeted at around 7% annually.

Buck Labs Unveils its BUCK Token

Cayman Islands-registered Buck Labs has launched the "BUCK" crypto token, tagging it as a yield-bearing “savings coin” designed for users seeking returns on dollar-denominated crypto holdings without relying on traditional stablecoins.

According to the company, BUCK is backed by shares in Strategy (MSTR) shares, the largest corporate holder of bitcoin with over 670k BTC on its balance sheet. 

Travis VanderZanden, founder and CEO of Buck Labs, told CoinDesk that the token is initially priced at $1 and will distribute rewards currently targeted at around 7% annually, with returns accruing on a minute-by-minute basis. 

However, the company is not marketing BUCK as a stablecoin and does not maintain a hard dollar peg. Thus, its price, similar to other cryptocurrencies, is subject to volatility based on market conditions.

The company explained that the funding to reward holders is obtained indirectly through the foundation’s treasury holdings of Strategy’s bitcoin-linked perpetual preferred stock, known as STRC. 

VanderZanden, who previously held leadership roles at Bird, Lyft, and Uber, added that,

“Every healthy economy needs both a way to spend and a way to save, which is why Buck introduces the SavingsCoin. Stablecoins have become very good at moving money, but Buck is designed for what happens in between, earning rewards on idle capital."

BUCK will serve as a governance token, allowing holders to vote on reward distribution and other protocol decisions. Currently, BUCK is designed for non-U.S. users initially and is not being offered as a security.

VanderZanden added that BUCK is aimed at users who seek predictable crypto-based returns without actively trading.

“People want a simple way to earn rewards in crypto without becoming speculators. Buck is designed to make saving in crypto more intuitive,” he concluded.