# New Buyback and Burning System

Building upon AGP-2 foundation, we propose a “buyback and burn” framework that scales with protocol volumes, creating a direct connection between Aevo success and $AEVO buy and supply pressure.

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 below tab): 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.

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).

## 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.


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