ASTER activated automated token buybacks after a sharp price drop, aiming to stabilize supply, restore confidence, and strengthen long-term tokenomics.
ASTER has activated its Strategic Buyback Reserve following a sharp decline in its native token price. The move follows after ASTER dropped to $0.55 before rebounding off near $0.62. As a consequence, the project indicated enhanced intervention to stabilize market confidence and circulating supply.
ASTER Activates Buyback Program After Sharp Price Decline
The announcement came after the price fell by 14% as recorded during the past 24 hours. According to the team, automated repurchases are now live. These buybacks follow on the Stage 5 Buyback Program that was introduced last month.
Under the program, ASTER dedicates between 20 percent and 40 percent of the daily platform fees. These funds go towards the repurchase of tokens. Moreover, execution is dynamic and changes with the prevailing market conditions.
Related Reading: ASTER Crashes to All-Time Low: Why Sell Pressure May Persist | Live Bitcoin News
Initial buybacks are already done automatically from the reserve wallet. The team verifies transactions on-chain. Therefore, transparency is at the heart of the design and implementation of the initiative.
ASTER stated the goal is to maximize value over the long run and reduce circulating supply. By tying buybacks directly to the revenue generated by the platform, there is an attempt at sustainability. This structure prevents the use of discretionary or short-term interventions.
The larger goal is that of restoring holder confidence in volatile sections. Market participants often watch such mechanisms closely. As a result, the activation gave immediate attention across trading communities.
Structured Buybacks Aim to Stabilize ASTER Ecosystem
The automatic buyback structure is available to allocate up to 80% of daily platform fees. These funds are used to buy back ASTER tokens in the open markets. As a result, sell-side pressure may slowly subside.
The execution is based on a well-defined two-phase model. First 40% of the fees incurred daily will be used for automatic on-chain buybacks. These transactions are carried out via a public wallet to be transparent.
Second, another 20% to 40% of fees are put into a Strategic Buyback Reserve. This reserve is used flexibly in times of high volatility. Therefore, the team has some discretion in extreme market conditions.
All buyback transactions are still visible on the blockchain. Users can track activity in real-time with the help of monitoring tools built on the blockchain. The MEXC News Dashboard is one of the visibility support platforms.
Despite the initiative, ASTER still experiences the pressure of selling for $0.62. Analysts say that a confirmation of the recovery would involve a breakout above $0.90. Until then, caution can still be present for short-term traders.
However, historical support provides a context for the present strategy. In November, Binance’s founder Changpeng Zhao publicly revealed that he bought more than 2 million ASTER tokens.
The team stressed that the buyback activation is indicative of long-term planning. Decisions are conceived in terms of strategic rather than reactive. Therefore, the focus is still kept on sustainable tokenomics and ecosystem stability.
Lastly, investors are still paying close attention to execution consistency. Therefore, the coming weeks can be critical in determining whether there is a gradual return of confidence or not.
Source: https://www.livebitcoinnews.com/aster-starts-automated-buybacks-following-token-slide-to-0-62/
