Aster adjusts tokenomics: 99% of daily fees to ASTER buybacks

Aster announces a major update to the tokenomics of its ASTER token. From 17 June at 12:00 UTC, 99% of all daily platform fees will automatically go towards the buyback of ASTER tokens. At the same time, an equivalent amount of ASTER will be burned from the reserves, gradually reducing the total supply from 8 billion to 3 billion tokens.

How do the new tokenomics work?

The burns take place bi-weekly and initially come from the team allocation. This will continue until the total supply reaches the limit of 3,000,000,000 ASTER, as explained by Aster in the official documentation. The mechanism is fully automated: as soon as a buyback occurs, an immediate equivalent burn from the reserve follows.

All repurchased ASTER tokens are distributed to veASTER stakers as so-called Loyalty Rewards. The distribution is based on the staking weight, meaning that users who lock their tokens for longer receive more rewards. For anyone wanting to learn more about how crypto staking works, this is a relevant factor when evaluating this system.

Extra rewards via permissionless listings

In addition to the daily fee buybacks, Aster is also introducing an additional mechanism through its spot market. Each permissionless listing on Aster Spot will now cost 50,000 USDT. This amount is also used to buy back ASTER, on top of the regular staking rewards. The platform is thus aiming to combine multiple revenue streams for a structural deflationary effect.

The update appears designed to support the value of ASTER in the long term by significantly reducing the circulating supply and allowing stakers to benefit directly from platform activity. Whether this will actually have an effect on the price remains to be seen in the coming weeks and months.