Aster has introduced an innovative buyback mechanism, allocating up to 40% of its daily platform fees for the repurchase of on-chain ASTER tokens. This new buyback reserve became operational on January 19, with initial transactions already visible on the blockchain.
This reserve operates in conjunction with Aster”s existing buyback framework, which is financed directly from revenues generated by the protocol”s perpetual futures exchange. The recent activation marks a strategic shift in Aster”s approach to token repurchases, enhancing its ability to manage market fluctuations.
Differences from Stage 5 Buybacks
The newly activated reserve is distinct from Aster”s Stage 5 buyback program, which has been in effect since late December 2025. Stage 5 buybacks are characterized by automatic, fixed daily repurchases that utilize a set portion of platform fees, irrespective of short-term market dynamics.
In contrast, the new reserve employs a discretionary approach, allowing allocations to fluctuate between 20% and 40% based on factors such as liquidity, market volatility, and price movements. Together, the Stage 5 buybacks and the new reserve could direct as much as 80% of daily protocol fees towards ASTER repurchases, all of which are verifiable on-chain.
Funding and Long-Term Strategy
The funding for these buybacks primarily stems from trading fees accrued through perpetual trading, complemented by contributions from Shield Mode. This feature imposes fees only on profitable trades, ensuring that all Shield Mode fees are entirely allocated to ASTER buybacks.
Historically, Aster”s prior buyback stages have successfully repurchased over 209 million ASTER tokens, amounting to more than $140 million at the time of acquisition. Some of these tokens have been burned, while others have been retained as part of treasury management strategies.
Currently, ASTER has experienced a decline of approximately 13% over the last 30 days, reflecting broader market trends rather than any adverse effects from the buyback program. Aster has indicated that this framework is intended to operate throughout 2026, positioning the new reserve as a sustainable mechanism linked to the platform”s revenue rather than a temporary intervention to manipulate market prices.
