Buyback and burn
How about 0.4988% of every coin's volume automatically buys that coin back and burns it.
Every coin on Halo has its own burn share: about 0.4988% of the volume it trades is spent buying that same coin on the market, and everything bought is burned. Burning removes tokens from the supply permanently, so each remaining token is a larger share of the supply. Holders claim nothing.
Why it is run by Halo
DBC pays trading fees to two wallets: the coin's creator and the launchpad's fee claimer. Halo's fee claimer wallet collects Halo's 0.7488% share of each coin's volume and does the buying and burning itself. The Meteora program does not enforce the burn. It is a commitment by Halo, and the swap and burn transactions on chain are the evidence. Security says what that means.
The cycle
- Claim. Halo's job claims its partner share of a coin's fees. The fees are collected in SOL, on the bonding curve and, after graduation, on the DAMM v2 pool.
- Split. Each claim is divided. About 66.6% (0.4988 out of 0.7488) goes into that coin's own reserve and about 33.4% (0.25 out of 0.7488) goes into the treasury reserve. Fees from one coin never buy another coin; only the treasury share is pooled, and it is spent on the main coin. See Treasury and the main coin.
- Buy. When a coin's reserve reaches 0.01 SOL, Halo spends it on that coin. Before graduation the swap goes through the coin's DBC curve pool. After graduation it goes through Jupiter, which routes to the coin's DAMM v2 pool.
- Burn. Whatever the swap delivered is burned with the standard SPL token burn instruction, and the temporary token account is closed. The tokens are gone from the supply and the burn is visible on chain.
- Record. Each buyback is recorded with its swap signature, its burn signature, the SOL spent and the tokens burned.
There is no other threshold and no schedule to wait for. The job checks every couple of minutes and spends any reserve that has reached 0.01 SOL. A coin that trades a lot burns often; a quiet coin burns when its reserve gets there.
What the buyback is
A buyback is an ordinary trade. It pays the same 1.56% fee as any other swap, so a slice of every buyback flows back through the same split, and it moves the price like any buy of that size. A buyback adds demand. It sets no price floor and promises no price.
Reading the burns
Each coin page shows the tokens burned and the SOL spent on burns. The app also shows the total SOL spent on burns across Halo, and the API lists every burn for a coin with its signatures.
| Parameter | Value |
|---|---|
| Share of a coin's trade volume | about 0.4988% |
| Currency | SOL, collected in SOL |
| Minimum reserve to spend | 0.01 SOL |
| Before graduation | Swap against the coin's DBC pool |
| After graduation | Swap through Jupiter, routed to the DAMM v2 pool |
| Burn method | SPL token burn, on chain |
| Operated by | Halo's fee claimer wallet |
Worked example
A coin trades 1,000 SOL of volume. It generates 15.6 SOL of fees. Meteora takes 3.12 SOL, the creator gets 4.99 SOL, the treasury share is 2.50 SOL, and 4.99 SOL goes into that coin's reserve and is spent buying the coin back and burning it, in steps of at least 0.01 SOL.
Limits
The burn share comes from trading fees, so it depends entirely on volume. A coin with little trading burns little. The buying and burning is done by Halo's job and runs only while Halo operates it; the on-chain swap and burn transactions are the evidence. A burn reduces supply and promises no price, and holding a coin can lose money.
Two further limits apply today.
- The job that claims, buys and burns is switched on by Halo and is off until it is enabled at launch. Until then fees accumulate in the pools and are not lost.
- The path for graduated coins, which claims the fees of Halo's locked DAMM v2 position and buys through Jupiter, is built but has not yet been exercised on chain. It can only run once the configuration exists and a coin has graduated.