What to know:
- Aster finished its first token buyback using daily fees and repurchased 2.9M ASTER
- Team tokens were burned while bought tokens were moved into staking rewards
- System links trading fees, staking rewards, and supply reduction to support ASTER holders
The Aster token buyback has completed its first cycle under the exchange’s revised tokenomics plan. The BNB Chain-based DEX said the move used platform fees collected since June 17. The update directly links daily activity with staking rewards and supply cuts.
Aster announced the first round in an X post on Monday. The protocol said 99% of daily fees had bought back 2,937,125.53 ASTER as of June 29 at 00:00 UTC. It also burned the same amount from the team allocation.
The Aster token buyback and burn are not the same process. No tokens were burned from the market. They were moved into the Loyalty Rewards program for users who stake ASTER.
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Aster Links Staking Rewards With Team Token Burns
A separate path is used for the burn. Aster withdrew 2,937,125.53 ASTER from its team reserves. Those tokens will never be in circulation again and will not be able to be used or traded.
The rewards system rewards each period with a base of 300,000 ASTER. Aster token buyback then makes use of the daily fees to increase the quantity of tokens in that pool by buying them. User rewards will be based on veASTER balances and lock-up durations.
Aster stated that the model will link exchange activity with the tokens rewards. The higher trading fees can help to buy more ASTER from the market. Those tokens are then distributed to stakers instead of being held by the protocol.
The burn mechanism is focused on reducing supply over time. Aster will reduce the total number of tokens supplied from 8 billion to 3 billion. The reduction will start with the team allocation and will be continued via matching burns.
According to the protocol, the Aster token buyback process is automatic. It adopts a purchase system by the average price over the day. The method is designed to distribute purchase throughout the day, not in a single order.
Aster Token Buyback Links Spot Fees With Staking Rewards
Aster also added another supply for future purchases. The permissionless listing on Aster Spot will incur a fee of 50,000 USDT. The protocol stated that those fees will be utilized to purchase ASTER in order to offer stakes.
The Aster token buyback model was introduced earlier this month. It is a part of a larger tokenomics shift for the decentralized exchange. The structure has correlated fee generation, staking rewards, and reserve burns in a single system.
The new update provides a direct benefit for the stakers over time related to platform fees. It also takes the same tokens out of Aster’s tokens pool. This results in a double system of rewarding and supply limiting.
Ongoing trading could lead to additional fee collections and purchases. Matching burns would also be made from project reserves. This process will form part of Aster’s revamped token system.
According to CoinMarketCap data, ASTER is trading at $0.62 at the time of writing. Over the last 24 hours, the token has increased by 1.34%. The attention of the market now lies on the next cycle of the Aster token buyback.
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