Buyback & Burn
Buying $ASTRA. Reducing its supply.
Overview
Astra includes a buyback-and-burn mechanism funded by designated trading fees and contributions from participating products.
Buyback
A buyback uses allocated funds to purchase $ASTRA from the market.
Burn
A burn permanently removes the purchased tokens from circulation.
How it works
| Step | What happens |
|---|---|
| Fund | Designated fees or revenue contributions are allocated to buybacks |
| Buy | The allocated funds purchase $ASTRA |
| Burn | The purchased tokens are permanently removed from circulation |
| Verify | The transactions can be checked on-chain |
Automation is intended to carry out this process under the mechanism’s defined execution rules.
A simple example
A permanent change to supply
$ASTRA has a fixed maximum supply with no additional minting. Burning tokens reduces the remaining supply permanently.
A burn does not guarantee a price increase. Market price continues to depend on demand, liquidity and other conditions.
Connected to product activity
Participating Astra products can contribute part of their revenue to the buyback-and-burn programme.
This connects the use of those products with purchases and permanent removal of $ASTRA, alongside the economy’s other allocations.
Funding sources, execution rules and completed transactions will be detailed through the programme’s reporting.