Revolutionary Move from Altcoin: Billions of Tokens to be Burned with 99% of Revenues
Aster (ASTER) experienced a sharp surge after announcing it would allocate 99% of platform revenues to an automated buyback program, though it failed to sustain its gains due to general market conditions.
Decentralized perpetual futures exchange Aster shared a revolutionary update for its native token, ASTER. The protocol announced it would use nearly all daily platform fees for an automated buyback program. Following this move, the ASTER price gained over 10% in a short period, climbing to the $0.80 range—its highest level since January.
According to the new system, all bought-back tokens will be distributed as rewards to veASTER holders. By locking their ASTER holdings for a specific period, users receive these non-transferable tokens, which allow them to earn a share of platform revenues, gain voting rights, and receive trading fee discounts. Furthermore, the protocol aims to permanently reduce the supply by burning an equivalent amount of tokens from protocol reserves simultaneously with every buyback transaction.
A New Era of Supply Control in Aster Tokenomics
The protocol plans to reduce the total ASTER supply from approximately 7.82 billion to 3 billion. These burn transactions, which will take place bi-weekly, will continue until the target figure is reached. This strategy represents a complete departure from the old model where new tokens were constantly introduced to the market regardless of demand, and aims to reflect the platform’s own activity directly into the token’s value.
However, this wave of appreciation met with hawkish statements from the U.S. Federal Reserve (Fed) and the general downward trend in the cryptocurrency market. ASTER, which climbed as high as $0.7923 during the day, retreated to the $0.6467 level amid selling pressure. As of writing, the token is attempting to stabilize around $0.68; although it continues to attract investor interest, it appears to remain overshadowed by macroeconomic factors.