Aster Puts 99% of Fees on a Buyback-Burn Diet—Up to 5B Tokens on the Chopping Block 🪙

Aster has restructured its tokenomics to channel nearly all platform revenue into ASTER buybacks while introducing a supply-reduction mechanism that could remove up to 5 billion tokens from circulation. Announced on June 17, the protocol will automatically use 99% of daily platform fees to purchase ASTER on the open market, with all bought-back tokens distributed to veASTER stakers as additional rewards and an equal amount burned from reserve allocations.

Under the new model, Aster will execute the purchases through an automated time-weighted average price (TWAP) mechanism. Acquired tokens will be routed to a public buyback wallet before being distributed to veASTER holders during reward epochs. The buyback rewards will supplement the protocol's existing 300,000 ASTER base loyalty rewards. Aster also confirmed that revenue from permissionless spot listings will feed the program, with each listing carrying a 50,000 USDT fee that will be used to purchase additional ASTER for staking rewards.

Simultaneously, Aster introduced a burn mechanism tied directly to buyback activity. For every ASTER token purchased through the revenue-backed buyback system, an equal amount will be burned from reserve allocations, with team allocation tokens burned first before other reserve categories are tapped. Burns will be executed every two weeks and continue until ASTER's total supply reaches 3 billion. Based on the current maximum supply of 8 billion ASTER, the long-term target implies a potential reduction of up to 5 billion tokens.

The update reaffirmed Aster's broader token allocation structure, with 53.5% of supply allocated to community rewards and airdrops, 30% reserved for ecosystem growth, partnerships, liquidity incentives, and staking programs, 7% to the treasury, 5% to team contributors and advisors, and 4.5% to liquidity and exchange listings. The team allocation remains subject to a 12-month cliff followed by 40 months of linear vesting.

Following the announcement, ASTER rose 21% from $0.661 to $0.803 on June 17, representing what the protocol described as a 198% step up in its buyback and burn commitments, though the token later retraced as part of a broader consolidation. Daily trading volume spiked 366% over the same period, while ASTER added 1.34% in the preceding 24 hours. Bitcoin [$BTC], for its part, has been laboring under a long-term downtrend, with a bounce to $67K quickly halted and the $64K support zone under threat, contributing to selling pressure across altcoin markets.