Aster DEX has activated its Phase 5 ASTER Token buyback program, using up to 80% of protocol fees and 100% of net profits from Shield Mode to buy back tokens, aiming to absorb selling pressure and support price stability.
Amidst a prolonged cryptocurrency market downturn, Aster DEX prioritizes measures to reduce supply and absorb selling liquidation . The focus is on an automated buyback mechanism based on platform fees and Shield Mode fees, along with a transparent wallet that the community can track.
- Aster DEX is implementing a phase 5 buyback, allocating up to 80% of protocol fees to buybacks.
- 40% of the daily platform fees are used for automatic buybacks; Shield Mode uses 100% of the fees for buybacks.
- ASTER remains under downward pressure; the $0.60 level is support, while $0.83 (EMA20) is the condition for a daily reversal.
Aster DEX launches Phase 5 of its ASTER buyback program.
Aster DEX has launched phase 5 of its buyback program, allowing up to 80% of protocol fees to be used to buy back Token and reduce selling pressure, with 40% of daily fees being automatically repurchased.
Aster DEX announced the completion of four previous buyback programs, purchasing over 209 million Token with a total value exceeding $140 million. This is a deflationary effort aimed at absorbing the supply Dump during a period of weakness in the crypto market.
In phase 5, the platform allocates a maximum of 80% of fees to buybacks. According to the official announcement on X, 40% of the platform fees each day are now allocated to a daily automatic buyback mechanism. The official report from Aster DEX states that this mechanism aims to support price stability and reduce selling pressure over time.
Buyback orders are processed through a transparent wallet for the community to track. In addition to the automatic buyback, 20–40% of the total fees will go into a strategic reserve fund.
Since Phase 5 went into effect, the team has purchased 566,000 ASTER, valued at approximately $399,000 according to Asterlify. This figure reflects buybacks being executed under the announced mechanism, although the impact on price is still dependent on actual supply and demand in the market.
Shield Mode Fees are used 100% for ASTER buybacks.
Aster DEX commits to using 100% of Shield Mode Fees to buy back ASTER, applying a profit/loss Chia model: traders pay 15% of net profits and are not charged fees for losses.
In addition to platform fees, Aster DEX is supplementing its buyback program with the newly launched Shield Mode Fees. According to the team's announcement, all Shield Mode Fees will be used to buy back ASTER Token . The Aster DEX team emphasized that this mechanism links buyback performance to trading efficiency within Shield Mode.
The fee structure, based on a profit Chia model, stipulates that market participants pay a 15% fee on net profits and no fee on losses. The collected protocol fees are fully invested in Token buybacks.
This means that all net profits from Shield Mode will be allocated to ASTER Buybacks. Mechanistically, buybacks will increase as volume and net profits in Shield Mode increase, but the ultimate effect still depends on investor selling pressure and overall market conditions.
ASTER remains under significant downward pressure despite deflationary measures.
Despite the increased buyback on Aster DEX, ASTER is still under significant selling pressure: selling volume exceeds buying volume, large holder are net sellers, and the price remains below the EMA20/EMA50 in the descending channel.
The market has not reacted positively to deflationary measures, causing ASTER to continue to face selling pressure. The downward pressure comes from both retail and large investors, with strong Dump activity.
According to Coinalyze, ASTER recorded 4.43 million sell volume compared to 3.54 million buy volume at the time in question. The buy-sell delta was -890,000, indicating that sellers were dominating.
The data also shows that large holder sold 17 million ASTER in the past 24 hours, reinforcing the signal that the market is leaning towards a downtrend.
Technically, ASTER is trading within a descending channel and below the EMA20 and EMA50 lines, reflecting a dominant bearish momentum. If selling pressure persists, the price could continue to weaken.
In a negative scenario, ASTER risks retreating to the $0.60 support zone. For a clear reversal to form, the condition is that the daily candle must close above the EMA20 at $0.83.
Frequently Asked Questions
How does Aster DEX's Phase 5 buyback program allocate fees?
Phase 5 allows up to 80% of protocol fees to be used for buybacks. Of this, 40% of daily platform fees are allocated to the automatic daily buyback mechanism, while the remainder can be allocated according to configuration, including 20–40% transferred to a strategic reserve fund.
What mechanism is used to purchase ASTER through Shield Mode Fees?
Aster DEX states that 100% of Shield Mode Fees will be used to buy back ASTER. The platform employs a profit/loss Chia model: it collects 15% on net profits and does not charge fees for losses; all fees collected are used for buybacks.
Why is ASTER still falling despite Aster DEX's Token buyback?
Buybacks may absorb some of the selling pressure, but prices still depend on actual supply and demand. The data presented shows that selling volume exceeded buying volume, with large holder net sellers, causing downward pressure to outweigh the supportive effects of deflationary measures.
What are the key price milestones for ASTER that were mentioned?
Two key levels were identified: support at $0.60 if the downtrend continues, and the $0.83 level corresponding to the EMA20, where ASTER needs to close the daily candle above to support a significant reversal scenario.
