Aster has overhauled its token-value model by redirecting 99% of daily platform fees into ASTER purchases and matching every token bought with an equivalent burn from protocol reserves.
The new structure took effect at 12:00 p.m. UTC on June 17. It links trading activity directly to open-market demand while reducing total supply through a separate reserve burn.
ASTER reacted with a gain of roughly 12%, trading near $0.745 as 24-hour volume approached $200 million. The rally pushed the token toward the upper end of its daily range after months of debate over whether Aster’s fee revenue was creating enough value for holders.
Under the revised ASTER tokenomics, 99% of daily platform fees will be used to purchase ASTER.
The protocol will then burn the same number of tokens from its reserves. If fee revenue funds the purchase of one million ASTER, another one million ASTER will be permanently removed from the reserve supply.
The purchased tokens are not immediately burned. They will be redirected into Loyalty Rewards for users who lock ASTER and receive veASTER-based reward weight.
This creates two simultaneous effects. Buybacks generate recurring market demand, while the matching reserve burn reduces total token supply. Aster intends to continue reducing supply toward approximately three billion ASTER from the original eight billion-token maximum.
The pace will depend on trading activity, fee generation and the market price paid for each repurchased token. Higher fees increase the available buyback budget, while a lower ASTER price allows the same amount of revenue to remove more tokens from the market.
Aster’s staking system already allocates 300,000 ASTER per weekly epoch to Loyalty Rewards. Buyback tokens will now be added to that pool.
Individual rewards depend on veASTER weight, which combines the amount locked with the remaining lock duration. A trading-volume multiplier can increase that weight further, giving long-term and active participants a larger share of each epoch’s distribution.
A separate Base APY pool distributes 150,000 ASTER per epoch according to validator performance and delegated stake. The buyback overhaul affects the Loyalty Rewards layer rather than replacing the validator-based allocation.
Permissionless spot listings will also contribute to the system. Each new listing carries a 50,000 USDT fee that will be used to acquire additional ASTER for staking rewards.
The overhaul replaces Aster’s previous model, which directed a smaller share of platform revenue into buybacks. It also addresses criticism that earlier repurchases struggled to offset emissions and supply entering circulation.
That imbalance previously shaped the debate over whether Aster’s buybacks could overcome token-supply pressure. The new one-for-one reserve burn creates a clearer reduction mechanism because every repurchased token now produces an equal decrease elsewhere in the supply.
The price response reflects expectations rather than completed supply reduction. Public buyback wallets, reserve-burn transactions, platform fees and epoch distributions will show whether 99% fee redirection can consistently remove more supply than staking rewards and other allocations return to circulation.
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