Aster strengthens its deflationary mechanism: 99% of fees go toward token buybacks, price surges 10%
The decentralized exchange Aster has announced a major tokenomics update that fundamentally changes the protocol's economy. Starting June 17, 2026, 99% of all daily platform fees will be automatically used to buy back the $ASTER token from the market. This is not just a buyback — it is part of an aggressive deflationary strategy where each purchased token is offset by burning an equivalent volume from reserves, primarily from team allocations.
The mechanism works as follows: fees are converted into $ASTER via a TWAP order within 24 hours and sent to a public on-chain wallet (0xa0edBaBcb48034e368de286b49F9603C7AfA1b60). All purchased tokens are directed to the Loyalty Rewards pool, which supplements the base reward pool of 300,000 $ASTER. Distribution is proportional to the veASTER lock weight, directly linking staker yields to trader activity on the platform.
Token burns will occur every two weeks and will continue until the total supply is reduced to a target level of 3 billion. At launch, the total supply was 8 billion, and as of June 17, 2026, it stands at approximately 7.82 billion, of which roughly 2.68–2.70 billion are in circulation. Previous rounds of buybacks and burns have already removed tens of millions of tokens from the market, with the cumulative buyback volume from fees exceeding hundreds of millions of dollars.
An additional incentive comes from new listings on spot exchanges. Each such listing incurs a fee of 50,000 USDT, which also goes toward token buybacks. Thus, the 198% mechanism (99% buyback + 99% equivalent burn) triggers a self-sustaining cycle: the more actively the platform is used, the higher the buying pressure and the faster the deflation.
Market Context and Prospects
Against the backdrop of this news, the price of $ASTER has risen by over 10%. Aster already processes billions of dollars in volume and competes with major players like Hyperliquid. The transparent on-chain implementation with verifiable wallets increases trust in the project — the DeFi space often faces criticism due to opaque token economics.
The update makes $ASTER one of the most advantageous tokens for long-term holders in the perpetual contracts sector. Yields are directly tied to platform activity and audience growth. If trading volumes remain or increase, the rate of supply reduction and reward levels will only grow.
Expert Opinion: Aster demonstrates a rare case in DeFi where tokenomics is not just declared but implemented with strict on-chain discipline. This approach could become a new standard for platforms seeking to retain long-term holders and align the interests of the protocol and the community.