Value capture in the crypto market refers to the process by which a protocol’s generated economic revenue is channeled to its own token and, consequently, to token holders. A project’s high trading volume, multi-billion-dollar TVL, or millions of users does not necessarily mean its token will appreciate in value. The key issue is how much of the generated economic activity is actually reflected in the token. There are three primary methods of value capture. First, using protocol revenues to buy back tokens from the market. Second, burning the purchased tokens to reduce circulating supply. Third, distributing transaction fees to investors who lock or stake their tokens. Protocols such as Hyperliquid, Curve, and Aerodrome offer different examples of these mechanisms. However, value capture is not the same as price appreciation. For instance, if a protocol buys back $100 million worth of tokens annually but issues $200 million in new tokens, the positive impact of buybacks may be offset by emission pressure. Four key variables determine this dynamic: the protocol’s sustainable revenue, the token’s market value, new token supply, and investor demand.