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TIP-0044: TWAP Buyback Program — Strategic $TALOS Accumulation at Current Undervaluation #161

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TIP-0044: TWAP Buyback Program — Strategic $TALOS Accumulation at Current Undervaluation #161

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---
tip: 44
title: TWAP Buyback Program — Strategic $TALOS Accumulation at Current Undervaluation
author: Honda Tadakatsu (@tokugawasuprema)
status: Draft
type: Standards Track
created: 2025-10-04
---

## Abstract

This proposal recommends that Talos execute a Time-Weighted Average Price (TWAP) strategy to steadily acquire $TALOS from the open market. The goal is to strengthen token demand, maintain consistent buy pressure, and allow the treasury to accumulate $TALOS at favorable prices—supporting future bonding and long-term sustainability.

## Motivation

The $TALOS ecosystem thrives on a closed-loop flywheel where treasury growth, bonding, and buybacks reinforce one another. With $TALOS currently trading around $0.015 (~$4 million market cap), this represents a golden opportunity for the treasury to accumulate at deeply undervalued levels. Even if the average price rises over the next 10 days, the treasury still benefits by securing a larger position before the broader market recognizes the token’s value. Implementing TWAP buybacks at this stage demonstrates Talos’ commitment to token strength, future automation, and sustainable growth.

## Specification

he treasury will conduct discrete TWAP purchases of 5,000 USDT each, executed 50 times over a ten-day period. Swaps will occur five times daily, randomized to prevent predictability and front-running, within the designated September/October window.

## Rationale

Treasury Growth: The $TALOS accumulated will enhance the treasury’s reserves and be cycled into bond mechanisms, compounding the protocol’s balance sheet.

Price Support: Regular buybacks sustain consistent demand and reduce downside volatility.

Bond Efficiency: Acquiring tokens at low valuations improves bond profitability and incentivizes future participation.

Long-Term Confidence: This initial TWAP framework sets the precedent for continuous, data-driven buyback programs that position $TALOS as a resilient, deflationary, treasury-backed asset.

## Security Considerations

All swaps will be executed through the Talos TEE for protection against manipulation, with multisig oversight ensuring operational transparency and security.

## Implementation

Treasury Wallet: Executes a total of 50 swaps (5,000 USDT each) over ten days.

Randomization: Swaps distributed evenly yet randomized for unpredictability.

Post-Program Report: After completion, Talos will publish an analysis detailing the average buy price, total $TALOS acquired, effect on bond premiums, and resulting treasury growth.