Buck Introduces Alternative to Stablecoins: A Reward-Focused Savings Mechanism for Crypto Holders

Crypto investors constantly face a dilemma: traditional stablecoins excel at moving value between platforms, but offer little incentive for users holding idle capital. Buck Labs, a Cayman Islands-registered firm founded by Travis VanderZanden (formerly of Bird, Lyft, and Uber), is attempting to solve this gap with a new token designed to make saving in cryptocurrency more rewarding and intuitive.

The Buck token represents a fundamentally different approach to dollar-denominated digital assets. Rather than maintaining a hard peg to the U.S. dollar like conventional stablecoins, Buck floats freely while generating rewards that currently target around 7% annually. Returns accumulate continuously on a minute-by-minute basis, creating a compound effect that encourages longer holding periods over short-term trading cycles.

How Buck Leverages Bitcoin Strategy for Sustainable Yields

The mechanics behind Buck’s reward structure depend on a novel asset backing arrangement. Buck tokens are supported by holdings in Strategy’s bitcoin-linked perpetual preferred stock (STRC), which itself is backed by MicroStrategy’s substantial bitcoin reserves—currently encompassing approximately 675,000 BTC on its balance sheet, making the company the largest corporate holder of bitcoin globally.

The foundation treasury receives periodic income payments from these STRC holdings, which funds the reward distribution mechanism. This structure creates a direct economic link between bitcoin appreciation and Buck token returns, though Buck remains distinct from bitcoin itself. The token’s value can fluctuate based on market demand and conditions, meaning holders are not guaranteed a fixed dollar value—a key distinction from traditional stablecoins.

Governance and Market Access: Buck’s Structural Design

Buck operates as a governance token, granting holders voting rights over reward distribution policies and other protocol decisions. This decentralized approach allows the community to shape how incentives evolve as market conditions change. Initially, Buck is being distributed exclusively to non-U.S. users, though this geographic restriction may evolve.

Priced at $1 at launch, the token is not marketed as a security and functions instead as a protocol asset. VanderZanden emphasized that the product is designed to fill a specific niche: users seeking predictable crypto-based income without the need to actively trade or speculate. “Every healthy economy needs both a way to spend and a way to save,” he explained, positioning Buck as the savings mechanism that traditional stablecoins overlook.

Beyond Trading: Why Buck Targets Long-Term Crypto Savers

The crypto ecosystem has witnessed explosive growth in stablecoin adoption, yet these instruments primarily serve as settlement rails and trading pairs rather than savings vehicles. Buck attempts to create a new category—what the team calls a “SavingsCoin”—designed for users comfortable holding idle capital while earning yield.

This positioning differentiates Buck from both stablecoins (which prioritize stability and liquidity) and volatile assets like ETH or BTC (which prioritize price discovery). The target audience comprises individuals who want consistent income from their crypto holdings without becoming full-time traders or using traditional DeFi protocols that require deeper technical knowledge.

Important Note: While Buck introduces an innovative structure, the token carries risks inherent to any reward-bearing crypto asset. Value fluctuates, revenue depends on Strategy’s bitcoin holdings and STRC income, and regulatory treatment remains uncertain. Additionally, Strategy and Michael Saylor have no affiliation with or endorsement of Buck, despite the token’s backing mechanism relying on Strategy assets.

Buck Labs’ introduction of this mechanism represents an attempt to broaden crypto’s utility beyond payments and speculation into the realm of personal finance and wealth preservation—territory traditionally occupied by savings accounts and bonds in the traditional economy.