The ASTER token dropped more than 12% on Monday to hit a record low of $0.61, prompting Aster protocol to activate its fee-driven buyback program that allocates up to 40% of daily platform revenue toward automatic repurchases.
What Happened: Buyback Activation
The token was trading at $0.63 as of Monday morning during the Asian session.
Aster announced it had begun deploying capital from its Strategic Buyback Reserve, with repurchases executed automatically through a dedicated wallet. The move follows the protocol's Stage 5 Buyback Program unveiled in late December.
"We're now actively deploying our Strategic Buyback Reserve for ASTER token repurchases automatically," Aster said in a post. "This activation allocates 20-40% of daily platform fees into targeted buybacks, responding dynamically to market conditions to maximize value and reduce circulating supply."
The protocol outlined a two-track mechanism combining predictability with flexibility.
Automatic daily buybacks consume 40% of fees and execute each day through a dedicated wallet, while the Strategic Buyback Reserve holds 20-40% of fees for targeted purchases based on market conditions.
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Why It Matters: Market Pressure Test
The decline comes amid broader pressure on smaller DEX tokens.
Lighter DEX recently implemented a similar buyback strategy for its LIT token, which rallied nearly 20% following the announcement.
ASTER's continued slide despite the intervention suggests protocol-driven buybacks may face limitations in bearish or thinly liquid markets.
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