Aster has overhauled its tokenomics model, directing nearly all platform revenue toward $ASTER buybacks while introducing a long-term burn mechanism that could remove up to 5 billion tokens from supply.
The protocol announced on June 17 that 99% of daily platform fees will now be automatically used to purchase $ASTER on the open market. All bought-back tokens will be distributed to veASTER stakers as additional rewards. At the same time, an equal amount of $ASTER will be burned from reserve allocations.
The change links protocol activity directly to token demand and introduces a supply-reduction strategy that continues until $ASTER’s total supply falls to 3 billion tokens.
Buybacks now tied directly to platform revenue
Under the new model, Aster will use 99% of daily platform fees to buy $ASTER through an automated time-weighted average price [TWAP] mechanism.
The purchased tokens will be sent to a public buyback wallet before being distributed to veASTER holders during reward epochs.
The buyback rewards will be added to the protocol’s existing 300,000 $ASTER base loyalty rewards, increasing staking incentives as platform activity grows.
Aster also said revenue generated from permissionless spot listings will contribute to the program. Every listing incurs a 50,000 USDT fee, which will be used to purchase additional $ASTER for staking rewards.
Burn program targets supply reduction
The protocol simultaneously 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.
According to the update, tokens from the team allocation will be burned first before other reserve categories are used.
Burns will be executed every two weeks and continue until $ASTER’s total supply reaches 3 billion.
Based on Aster’s current maximum supply of 8 billion $ASTER, the long-term target implies a potential reduction of up to 5 billion tokens.
Community remains largest allocation
The update also reaffirmed Aster’s broader token allocation structure.
According to the project, 53.5% of $ASTER’s supply remains allocated to community rewards and airdrops. 30% is reserved for ecosystem growth, partnerships, liquidity incentives, and staking programs.
The treasury allocation accounts for 7% of supply, with 5% reserved for team contributors and advisors and 4.5% allocated to liquidity and exchange listings.
The team allocation remains subject to a 12-month cliff followed by 40 months of linear vesting.
Final Summary
- Aster will use 99% of daily platform fees to buy back $ASTER, with purchased tokens distributed to veASTER stakers.
- The protocol will burn an equal number of reserve tokens for every $ASTER bought back, aiming to reduce the long-term supply from 8 billion to 3 billion tokens.
