Aster DEX Announces Buy-Back & Burn Strategy: 50% of Tokens to Be Permanently Removed, Remaining Half Locked for Community Programs

The decentralized trading platform Aster DEX (token: ASTER) has announced a major update to its tokenomics model. Under the new phase, 50% of all repurchased tokens will be permanently burned, while the remaining 50% will be locked and allocated for airdrop programs and community rewards.

In its official statement, the Aster team explained that the buy-back program will be funded by the capital raised during Project Stages S2 and S3. Of the total tokens repurchased, half will be immediately burned to reduce the circulating supply and create a deflationary effect within the ASTER ecosystem.

Meanwhile, the remaining 50% will be stored in a locked airdrop address, to be later used as incentives for active users and long-term holders. As part of its commitment to transparency, Aster has also shared the public address for all buy-back activities, allowing every transaction to be verified on-chain.

This initiative reflects Aster’s “50/50 tokenomics approach”, a strategy designed to balance deflationary mechanics with community growth. By permanently removing a portion of the tokens, Aster aims to mitigate inflationary pressure and preserve long-term asset value. On the other hand, locking part of the supply for airdrops and community rewards reaffirms the project’s commitment to user engagement and ecosystem sustainability, rather than short-term price speculation.

Market Response and Current Situation

Several reports noted that the announcement came amid heightened price volatility for ASTER. Following the release of the buy-back & burn news, the token’s price briefly dropped below US$1 before stabilizing. Analysts believe the strategy holds strong fundamental potential, though market participants appear to be waiting for tangible execution results of the buy-back and burn mechanisms before reacting significantly.

Implications for Investors and the Community

For ASTER holders, the reduction in circulating supply could create upward price pressure if demand continues to rise. For Aster DEX users, this policy is expected to strengthen confidence in the protocol’s long-term commitment to preserving token value and supporting ecosystem sustainability.

More broadly, Aster DEX’s initiative serves as a notable example of modern tokenomics in DeFi, combining deflationary principles with community empowerment a balanced approach that aligns financial sustainability with user participation.