- Aster will use 99% of daily platform fees to buy ASTER tokens on the open market.
- ASTER buybacks and spot listing fees will be distributed to veASTER holders.
- New burn mechanism could remove up to 5 billion ASTER from the total token supply.
Aster has revised its tokenomics by linking platform revenue directly to ASTER token buybacks while launching a long-term burn program to reduce the asset’s total supply. The new system redirects nearly all protocol-generated fees toward market purchases of ASTER, creating a direct connection between trading activity on the platform and demand for its native token.
The update combines two mechanisms operating in parallel. Revenue generated by the protocol will fund ongoing token buybacks, while an equivalent number of tokens will be removed from reserve allocations through scheduled burns.
New Fee Structure Redirects Revenue to ASTER Purchases
Under the revised framework, Aster will allocate 99% of daily platform fees to purchasing ASTER on the open market. The purchases will be executed through a time-weighted average price (TWAP) mechanism intended to spread transactions over time.
According to the protocol, purchased tokens will first be transferred to a public buyback wallet before being distributed to veASTER holders during reward periods. These distributions will be added to the platform’s existing 300,000 ASTER loyalty reward allocation.
The program also incorporates revenue from permissionless spot listings. Aster stated that each new listing carries a fee of 50,000 USDT, with those proceeds also directed toward ASTER purchases that will later be distributed to eligible stakers.
Burn Mechanism Targets Long-Term Supply Reduction
Alongside the buyback initiative, Aster introduced a burn model tied directly to buyback activity. For every ASTER token acquired through the revenue-backed purchase system, an equal amount will be removed from reserve allocations.
The protocol said burns will begin with tokens assigned to the team allocation, then expand to other reserve categories if needed. Burn events are scheduled to occur every two weeks.
The process will continue until ASTER’s total supply reaches 3 billion tokens. Given the project’s current maximum supply of 8 billion tokens, the target requires reducing the supply by up to 5 billion ASTER over time.
Token Allocation Remains Unchanged
Aster also reaffirmed its existing allocation structure. The project stated that 53.5% of the total supply remains designated for community rewards and airdrops, while 30% is reserved for ecosystem development, partnerships, liquidity incentives, and staking programs.
The treasury allocation accounts for 7% of the supply. Team contributors and advisors hold 5%, while 4.5% is allocated for liquidity and exchange listings. Team tokens remain subject to a 12-month cliff followed by 40 months of linear vesting.
At the time of the announcement, ASTER traded at $0.674431 with a 24-hour trading volume of $635.7 million. The token had a circulating supply of approximately 2.7 billion ASTER and a market capitalization of about $1.82 billion.
Related: Aster Launches Privacy-First Layer 1 Blockchain Built for Untraceable On-Chain Trading
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