Aster Introduces New Buyback Program Utilizing Up to 40% of Daily Fees

Aster has launched an innovative buyback mechanism that allocates up to 40% of its daily platform fees for the repurchase of ASTER tokens on-chain.

Key Takeaways

Aster's new buyback program activates up to 40% of daily fees for repurchasing ASTER tokens.
This mechanism operates alongside the existing Stage 5 buyback program, which automatically executes fixed buybacks.
The new reserve allows for flexibility in the allocation of funds, based on market conditions.
The combined buyback efforts can direct up to 80% of daily fees towards ASTER repurchases.
Aster aims to enhance ASTER demand through strategic long-term planning.

Aster activates strategic buyback program

Introduction of the New Buyback Reserve

On January 19, Aster initiated a new on-chain buyback reserve that utilizes 20%-40% of its daily platform fees for repurchasing ASTER tokens. Early on-chain transactions reflecting this activation have already been observed. This new mechanism is meant to complement Aster's existing buyback structure and is funded directly by revenue from the protocol’s perpetual futures exchange.

Distinguishing New Reserve from Stage 5 Buybacks

The latest reserve is distinct from Aster’s prior Stage 5 buyback program, which has been operational since late December 2025. Unlike Stage 5, which follows a fixed daily buyback plan using a set portion of platform fees irrespective of market trends, the new reserve is meant to be more adaptable. The allocation can range between 20% to 40%, depending on market factors such as liquidity, volatility, and price movements.

"We're now actively deploying our Strategic Buyback Reserve for $ASTER token repurchases automatically. Building on our Stage 5 Buyback Program announced last month, this activation allocates 20-40% of daily platform fees into targeted buybacks, responding dynamically to market conditions."
— Aster (@Aster_DEX) January 19, 2026

When the Stage 5 buybacks and the new reserve are combined, up to 80% of the daily protocol fees can be utilized for ASTER repurchases. Each buyback operation is conducted on-chain and is publicly verifiable.

Funding for these buybacks primarily comes from perpetual trading fees, supplemented by contributions from Shield Mode. This high-leverage feature generates fees exclusively from profitable trades, with all Shield Mode fees directed specifically towards ASTER buybacks.

Long-term Vision for Increasing ASTER Demand

Throughout its earlier buyback phases, Aster has successfully repurchased over 209 million ASTER tokens, valued at over $140 million at the time of purchase. Some tokens have been permanently burned, while others have been retained for treasury management purposes.

Currently, ASTER has experienced a decline of approximately 13% over the past 30 days. This drop aligns more closely with broader market fluctuations rather than any specific changes to the buyback program. Aster’s framework is intended to be a long-term strategy, expected to be operational throughout 2026, emphasizing the focus on platform revenue rather than short-term price manipulation.