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While it could be a possibility, it would only work for those protocols generating sufficient revenue outside of its own currency to support the cash flows needed to buy it back.  The thought of buybacks is to support the asset in the open market with other traders selling to the organization.  Steem would fail at this currently as Steemit Inc has no revenue outside the reward pool and is not generating fiat.  This is why project like Steem Monsters are important to foster as they do generate fiat cash flows and could potential act as a stabilizer to the market.

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Not only can it be done, I'm not sure how you'd stop anybody from doing it, at least until they're regulated like securities.

Also governments do this with their currencies all the time, too, and they don't have to be as public about it as corporations do.

I believe that the only way to achieve this is to have a system where the company would be required to put its entire financial balance sheet into a specialized blockchain for such activity and then with that data investors could go there and buy tokens from that company, which give it the possibility of gaining shares of tokens when the company distributes the profits.

Seems pretty easy to do if the party who created the token has funds to buy it back. 
Should it be done? I don't know. It could prevent people from losing a lot they poured into a single coin, but as you said, its manipulation. Do we want a free market, or not? 
But could it be done? Yes, 100% and I don't see how we can stop it.

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here my answer: 
https://steemit.com/bitcoin/@knircky/thoughts-on-buy-backs-can-they-apply-to-crypto

I think so!

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My understanding of "buybacks" as they relate to increasing the value of share prices is simply a function of reducing the available outstanding shares that a given company has to offer.  The fewer shares available to the public - the more valuable each remaining share becomes.  They are in essence creating an artificial scarcity in the availability of their stock, which in turn, supports the price to some effect.

To create the same effect in crypto, there would have to be an entity or string of entities that could effectively reduce the number of outstanding coins available for purchase.  Yes, that can be done, but only via **fresh new buying** to whatever extent this would reduce the overall number of tradable coins and hence raise the market value as a result of shrinking availability vs. the measure of demand for the asset in question.

>_The companies that do this DO NOT HAVE TO SELL STOCK first, they just BUY BACK shares or (retire shares outstanding) with allocated cash for such programs.  It is a simple way for them to rig the supply-demand dynamics to increase shareholder value and bonuses.  **It is a flawed practice in my view and should be outlawed.**_

The concept of a stock buyback is that the company feels it's shares are undervalued compared to what it feels they should trade at. As it's the companies duty to provide the best ROI on the capital the company has to it's shareholders the only time they should be purchasing stock back is when they have an excess of cash and feel the stock is cheaper then it will be in the future. 

The idea of buybacks isn't about controlling price, but rather about creating more value for it's shareholders. 

So a buyback announced when the investing community feels a stock is already to high can be a major negative for a stocks value. It shows poor leadership and lack of forward thinking decision making ability. But one timed when the community feels a company is holding to much cash without a vision to put it to work can be very beneficial to the long term stock value reducing it's supply. 

That all said 100% you could have this in centralized projects, which many coins are. But in a fully decentralized project it wouldn't be achievable. 

In a centralized coin there is a parent company which issues the coins. Pretty much any ICO is not decentralized and could take advantage of this idea of buybacks and reselling. Most of them still own a massive stake of coins which are to be used for future R&D or to pay salaries. This stake is large enough to control the price on any upswing, then later on a down trend they could take those profits to buy back the coins they sold plus some.

A truly decentralized coin which has no central control would not have the ability IMO without a predefined system in place that spells out when price swings would be attempted to be capped. But even with it being predefined you would need to fund it with coins and capital at the onset. Plus hire someone to manage these funds and make sure that the rules are followed....don't forget needing funds to pay this company. You would also need to realize that with predefined rules that pump and dump specialists would be able to manipulate your rules against you. 

So the same rigid set of rules that make sure the companies hired to achieve balance doesn't go against the intentions of the founders are the same rules that can create manipulation by those looking to exploit your rigid trading rules. 

To be clear most coins out there IMO are not actually decentralized and therefor most could take advantage of this.

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