Daily $SKY buybacks nearly doubled this week. Since mid-March, Sky had been buying back about $38K of SKY per day. Yesterday, buybacks ended at $73K. Crucially, this is not a one-off discretionary increase. It marks the activation of the programmatic revenue waterfall I outlined in my May report. Each month, 20% of net revenue goes to security and maintenance. Another 0-40% is retained to rebuild reserves, depending on backstop capital at month-end, which has a $150M floor and a target equal to 1.5% of USDS supply. The remaining capital is split: >45% to SKY buybacks funding SKY staking rewards >45% to USDS staking rewards >10% to SKY buyback & burn July’s $10.5M of net revenue left $4.2M for this final allocation, with $2.31M allocated to SKY buybacks. The allocation will be recalculated monthly based on revenue and reserve levels. Yet another protocol adopting programmatic buybacks. What’s different with Sky is that you have much better visibility into the financials: not only the buybacks, but also the expenses, which usually sit offchain.