> For the complete documentation index, see [llms.txt](https://docs.aevo.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.aevo.xyz/aevo-governance/governance/buyback-and-burning-system.md).

# Buyback and Burning System

Tokens acquired through onchain monthly buybacks will be allocated as follows:

* 50% immediately burned to permanently reduce circulating supply;
* 50% flows to DAO Treasury reserves for strategic deployment, equally split for staking and trading rewards;
* For months with Exchange volume <$500M (Tier 1 - see the tab below): 100% immediately burned.

Both buyback and burn amounts scale with exchange performance, creating direct correlation between protocol success and token value accrual. The tier system uses monthly trading volume as the key performance indicator.

{% hint style="success" %}
Following AGP-3, to signal a fresh start and demonstrate commitment to token value preservation, we propose an inaugural symbolic burn, permanently removing 69 million $AEVO tokens from circulation (6.9% total supply).
{% endhint %}

## Monthly Volume Tiers

| Volume Tier | Monthly Exchange Volume | Monthly $AEVO Buyback | Monthly $AEVO Burn |
| ----------- | ----------------------: | --------------------: | -----------------: |
| Tier 1      |              $0 - $500M |             1,000,000 |          1,000,000 |
| Tier 2      |             $500M - $1B |             2,000,000 |          1,500,000 |
| Tier 3      |               $1B - $2B |             3,000,000 |          2,000,000 |
| Tier 4      |               $2B - $4B |             4,000,000 |          2,500,000 |
| Tier 5      |                    $4B+ |             5,000,000 |          3,000,000 |

Volume tier thresholds and corresponding buyback/burn amounts will be subject to monthly review. The DAO can adjust tiers based on market conditions and optimize balance between buyback pressure and burns.


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:

```
GET https://docs.aevo.xyz/aevo-governance/governance/buyback-and-burning-system.md?ask=<question>&goal=<endgoal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.

The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.