Buybacks and burns
The Lots fee model defines two buyback paths:
| Funding | Token bought and burned | Allocation |
|---|---|---|
| Project earnings | The project's own launch token | Optional allocation from the project's 70% fee share |
| ETH available for the separate protocol buyback allocation | $LOTS | Any ETH available within the protocol fee allocation is dedicated to $LOTS buys and burns |
Collected pool tokens stay in their original currencies. ETH-funded protocol buybacks require a separate source or conversion. Protocol Lot-token receipts are reserved for holder rewards. Neither programme accesses vault backing, wallet balances or locked principal.
Protocol buybacks: $LOTS
Protocol ETH buys $LOTS; a burn reduces supply. Reserved funding, executed purchases and completed burns are distinct. This programme is upcoming, independent of project settings, and depends on available ETH and successful execution.
Project buybacks: the launch token
A project can commit its own fee earnings to purchases and burns of its launch token. This is not a dividend or Lot redemption, and supply reduction does not guarantee price support.
Funding comes first
Projects choose 0–100% of future fee earnings. At 100%, their whole 70% entitlement is committed; the protocol share is untouched.
Reducing the setting or changing recipients never releases prior commitments. The executor cannot access backing, locked principal or holders' wallets.
Two burn paths
| Committed currency | Action |
|---|---|
| The launch's paired Lot token (or Stock Token for a direct-stock launch) | Buy the same launch token through its registered pool and burn the purchase atomically |
| The launch token | Burn those earmarked fee tokens directly; report separately from market purchases |
| Unsupported currency | Keep it accounted for until an approved bounded conversion exists |
A market purchase must be followed by an actual reduction in totalSupply in the same transaction. Sending purchased tokens to an address labeled “burn” without reducing supply does not satisfy this rule. If the burn fails, the purchase reverts.
Execution requirements
Execution must pass minimum-spend, slippage, impact and interval checks, plus the pool fee and active early limits. A revert preserves the committed balance.
Anyone can execute up to the committed amount, but cannot choose a different pool, recipient or destination. Resulting fees accrue for a later batch, without recursive buying.
The sender pays gas for a separate execution. Automatic execution during a sale uses that sale's gas, without deducting gas from committed token balances.
What to inspect
Track allocation, per-currency commitments, claimable remainder, execution limits and completed burns. Separate market purchases from direct fee-token burns, and original issuance from current supply. Programme buybacks are excluded from discovery volume rankings.
Liquidity, guards and transfer failures can prevent execution. No purchase amount, schedule or price support is guaranteed.