🔥$AVNT Buyback and Burn.
Avantis operates a systematic, revenue-linked buyback and burn program that ties $AVNT token supply reduction directly to protocol revenue. This page covers how the program works, the fee allocation structure, verification methods, and the roadmap for scaling.
Overview
The Buyback & Burn program allocates a percentage of daily protocol trading fees to purchase $AVNT on the open market and permanently remove it from circulating supply.
This mechanism ensures that as protocol usage grows, token supply decreases — creating a direct, transparent link between Avantis's economic activity and $AVNT value accrual.
Key properties:
Systematic — Executes daily, automatically, and proportionally to revenue.
Revenue-linked — Buyback volume scales with trading activity.
Permanent — All purchased tokens are sent to a burn address and removed from supply forever.
Verifiable — Every purchase and burn is onchain and publicly auditable.
How It Works
Eligible Fees
30% of all trading fees is directed to buying back $AVNT, here's the breakdown:
Opening fees
✅ Yes
Charged when a position is opened
Closing fees
✅ Yes
Charged when a position is closed
Win fees
✅ Yes
Charged on profitable trades
Margin fees
❌ No
100% allocated to LPs
Liquidation fees
❌ No
Allocated to protocol treasury
Excluded Fee Rationale
Margin fees are excluded because they compensate liquidity providers for their cost of capital and serve as a hedge against trading volatility and unhedged trades. Directing 100% of margin fees to LPs ensures LP protection and sustainable liquidity depth.
Liquidation fees are excluded because they fund the protocol treasury, covering operational costs for the core team.
Daily Execution
Each day, the designated percentage of eligible fees is used to:
Purchase $AVNT on the open market.
Burn the purchased tokens by sending them to a null address, permanently removing them from supply.
Buyback volume adjusts proportionally — higher protocol revenue means more tokens bought and burned; lower revenue means fewer. There is no fixed dollar amount or manual intervention.
Current Fee Allocation
Milestone 1 — Live Now
30% of daily opening, closing, and win fees are allocated to buyback and burn.
Opening / Closing / Win fees
30% → Buyback & Burn
Opening / Closing / Win fees
70% → Liquidity Providers
Margin fees
100% → Liquidity Providers
Liquidation fees
100% → Protocol Treasury
The core principle: operate at break-even while directing the majority of revenue back to token buybacks and ecosystem growth (LP + trader incentives).
Milestone Roadmap
Milestone 1 — 30% Allocation ✅
Status: Live
Allocation: 30% of daily opening, closing, and win fees
Activation: Immediate, no conditions
Milestone 2 — 50%+ Allocation 🔜
Status: Planned (target: end of Q2)
Allocation: 50%+ of daily trading fees
Activation condition: Completion of protocol economic upgrades
Milestone 2 is not tied to an arbitrary revenue number. It activates once the following structural improvements are complete:
LP capital efficiency improvements — Optimizing how liquidity is deployed.
Liquidity architecture upgrades — Evaluating removal or restructuring of protocol-owned LP positions to increase the sustainable fee share captured by the protocol.
System risk management enhancements — Ensuring higher buyback allocations do not compromise trading liquidity or system stability.
These upgrades enable a higher allocation to buybacks without reducing LP returns or degrading the trading experience.
Design principle: Allocation scales alongside structural upgrades, not arbitrary thresholds.
Verification
All buyback and burn activity is fully transparent and on-chain. You can verify at any time using the following:
Buyback Dashboard
Buyback Address
0xa75886adA4dE4BA28F2385615216E48e7bEA1410
Burn Address
A null address where $AVNT is sent for permanent removal
Daily purchases and burns are recorded on-chain and displayed on the official buyback dashboard.
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