Aster's native token climbed 20% in the last 24 hours after a decentralized exchange built on BNB Chain announced a new tokenomics model that ties platform fees directly to token buybacks and burns. The rally came as traders reacted to what the DEX described as a 198% buyback and burn update — a figure that signals the exchange intends to remove more tokens from circulation than it collects in fees.
Why the tokenomics changed
The DEX, which operates on BNB Chain, said the update is designed to permanently reduce the supply of Aster tokens by using a portion of every transaction fee to buy back tokens from the open market and then burn them. Under the previous model, fee distribution was split among liquidity providers and the protocol treasury. Now, the buyback mechanism takes priority, effectively creating a deflationary pressure on the token supply.
The announcement did not provide a specific timeline for the rollout, but the DEX confirmed the change is already active on the platform. The 198% figure refers to the ratio of tokens burned relative to the fees collected — meaning for every 100 tokens worth of fees generated, roughly 198 tokens will be bought back and destroyed. That math requires the exchange to allocate additional funds beyond the fee pool, likely from the protocol's own reserves or a dedicated treasury.
Market reaction and token movement
Aster's token price surged from roughly $0.42 to above $0.50 in the hours following the news before settling at $0.49, according to data from major tracking platforms. Trading volume spiked more than 300% as buyers rushed in, though some of the gains pared by the end of the session.
The move puts the token's weekly performance into positive territory for the first time this month. Prior to the announcement, Aster had been trading in a narrow range amid broader market uncertainty.
BNB Chain, the blockchain where the DEX operates, has seen growing activity in decentralized finance protocols that experiment with aggressive buyback mechanics. Several projects on the network have adopted similar models in an attempt to boost token holder returns without relying on external yield programs.
What happens next
The DEX has not yet published a detailed breakdown of the burn schedule or the exact source of the additional funds for the 198% buyback. Traders will be watching for the next on-chain burn transaction to confirm the mechanism is running as advertised. If the burns materialize at the promised rate, the reduced supply could put further upward pressure on Aster's price. But skepticism remains — past tokenomics overhauls on other chains have sometimes failed to deliver the stated burn percentages once the initial hype faded.
For now, Aster holders are waiting for the first batch of buyback data to appear on the BNB Chain explorer. That data should show whether the DEX is actually burning nearly twice the fee revenue it takes in.
