Aster buybacks expanded as protocol deploys new dynamic fee-backed reserve

Aster activates new fee-based reserve for token repurchases

Aster has introduced an additional mechanism for aster buybacks as part of a broader effort to deepen on-chain liquidity and reinforce its token economics.

The protocol has started deploying a new on-chain reserve that channels 20%–40% of daily platform fees into automatic ASTER repurchases. The activation went live on January 19, and early transactions are already visible on-chain, offering transparent verification for users and traders.

Moreover, the reserve operates in parallel with Aster‘s existing buyback structure and is funded directly from revenue generated on the protocol’s perpetual futures exchange. This means that higher trading activity can translate into larger recurring token buybacks over time.

How the new reserve complements Stage 5 buybacks

The newly activated reserve is distinct from Aster’s Stage 5 buybacks, which have been running since late December 2025. Stage 5 executes fixed, automatic daily repurchases based on a predefined share of platform fees, regardless of short-term volatility or market sentiment.

The fresh reserve, by contrast, is designed to be discretionary and more flexible. Allocations can move within a 20% to 40% band depending on trading liquidity, market volatility, and prevailing price action, allowing the team to target buybacks in a more active way.

In an official statement, Aster described the initiative as the live deployment of its Strategic Buyback Reserve for $ASTER token repurchases, executed automatically. The team emphasized that, building on the Stage 5 framework announced last month, the activation allocates 20–40% of daily platform fees into targeted repurchases that respond dynamically to market conditions. This is the second and final exact use of the phrase aster buybacks.

When combined, the Stage 5 framework and the new reserve can direct up to 80% of daily protocol fees toward ASTER repurchases. However, all buyback activity remains fully on-chain and independently verifiable, reinforcing transparency around token flows.

The purchases are funded primarily through perp trading fees on the exchange, with additional contributions from Shield Mode. That said, Shield Mode is a high-leverage feature that charges fees only on profitable trades, and all Shield Mode fees are routed entirely into ASTER repurchases.

Long-term strategy to reinforce ASTER demand

Across previous stages of its buyback roadmap, the protocol has already repurchased more than 209 million ASTER tokens, worth over $140 million at the time of execution. Some of these tokens have been burned, while others were retained for broader treasury management purposes.

As of this writing, ASTER had fallen by roughly 13% over the preceding 30 days. However, that move appears more closely tied to overall market pressure than to any change in the underlying repurchase framework.

Aster has indicated that the current buyback architecture, including the new reserve, is expected to run throughout 2026. Moreover, the team has repeatedly framed the structure as a revenue-linked mechanism designed to scale with platform activity, not as a short-term intervention aimed at influencing the token’s price.

Overall, the expanded mechanism integrates automatic, on-chain token repurchases with fee generation from the core derivatives business, suggesting a long-term alignment between Aster’s trading volume, protocol revenue, and demand for its native ASTER token.