Here’s another clean rewrite with a slightly tighter newsroom tone:

ASTER saw sharp intraday volatility as bullish protocol updates were offset by a hawkish Federal Reserve and broader weakness in crypto markets.

The decentralized perpetuals exchange token surged more than 10% on Wednesday to 80 cents, its highest level since January, before reversing course, according to CoinDesk data. The rally followed the announcement of a tokenomics overhaul that allocates 99% of daily platform fees to an automated buyback program, effectively using protocol revenue to repurchase ASTER from the market.

Tokens acquired through the mechanism are distributed to veASTER holders, a non-transferable governance token earned by locking ASTER. It grants holders fee revenue exposure, voting rights, and trading discounts on the Aster DEX.

Each buyback is matched by an equivalent burn from protocol reserves, with bi-weekly reductions set to continue until total supply is reduced to 3 billion tokens from 7.82 billion.

The upgrade replaces Aster’s previous linear vesting model, which released tokens into circulation regardless of demand and was phased out earlier this year in January 2026.

According to the protocol, the new system links token value more directly to platform activity, with all distributions executed on-chain and no discretionary reserve allocation.

However, the rally quickly faded as a more hawkish Fed strengthened the U.S. dollar and pressured risk assets across the board.

At the time of writing, ASTER traded near 68 cents, down about 5% on the day after giving back most of its earlier gains.