The Buck Foundation has introduced a new digital asset designed for savings, named Buck, which offers holders 7% annual rewards that accumulate on a minute-by-minute basis. The token is backed by Strategy's bitcoin-collateralized perpetual preferred stock (STRC), ensuring institutional-grade stability.
How Buck Works
Buck is initially priced at $1 per token and supports 24/7 trading. Rewards are calculated based on the exact duration tokens are held, enabling continuous yield accrual. Investors can enter and exit directly in cryptocurrency, bypassing fiat conversions and traditional banking infrastructure. Travis Vanderzanden, founder and CEO of Buck Labs (the U.S. technology company behind the project), stated: "People want a simple way to earn rewards in crypto without becoming speculators, and that is exactly what Buck is designed to provide." He previously held senior roles at Lyft and Uber.
The Backing of STRC
The cornerstone of Buck's credibility is the Buck Foundation's holdings of Strategy's perpetual preferred stock (STRC). STRC is a bitcoin-collateralized instrument that pays the Buck treasury monthly returns at a variable annual rate. Buck token holders then vote on how those earnings are distributed, creating a transparent savings community rooted in STRC's overcollateralization and established financial framework. This structure ties Buck directly to a proven financial asset, ensuring its reward model is supported by institutional strength rather than speculative volatility.
Comparison with Stablecoins
Vanderzanden framed Buck as complementary to stablecoins: "Stablecoins act as the checking account, providing liquidity for daily activity. Buck is positioned as the high-reward savings coin, delivering dependable returns and financial discipline. Our goal is to make consistent savings a core financial function of crypto." Unlike stablecoins that maintain a fixed peg through reserves, Buck leverages a bitcoin-backed preferred stock to generate yield, appealing to users seeking higher returns without excessive risk.
Leadership and Market Positioning
Buck Labs is led by Travis Vanderzanden, a long-time bitcoin investor who previously scaled user growth and payment systems at Lyft and Uber. The project targets the growing demand for crypto-native savings products. While competitors like USDC interest accounts exist, Buck's unique use of a bitcoin-collateralized perpetual preferred stock (STRC) as backing sets it apart. However, the sustainability of the 7% annual yield and the potential volatility of STRC remain key risk factors that investors should monitor.
Conclusion
Buck presents a novel approach to crypto savings by bridging traditional financial instruments (perpetual preferred stock) with decentralized earning mechanisms. As the crypto market matures, products like Buck could help onboard users seeking predictable yields without active trading. Only time will tell whether Buck achieves its vision of a borderless, user-friendly savings experience.