💱Buybacks

Why Multipliers + Buybacks Instead of Fee Reductions

Old Model (Fee Discounts): $1 fee paid → $0.20–$0.50 saved. Treasury weakens, growth limited, returns capped at 1:1.

Jester Model (Buybacks + Spoils): $1 fee → ~69% routed into JEST buybacks.

Buybacks push the price curve up (reflexive effect), so each token bought becomes instantly more valuable. Repurchased JEST redistributed as Spoils at the pre-buyback price. Holders capture price lift, Spoils recipients gain at lower cost, whales benefit from amplified upside.

Takeaway: Fee reductions are linear and uninspiring. Buybacks are reflexive; they compound value by amplifying token price appreciation and enhancing Spoils payouts. Every fee strengthens the treasury and multiplies net user value beyond what discounts can ever deliver.

Dev’s Note: Think of discounts as handing pennies back at the counter. Buybacks instead push the price higher, then hand you more of the asset at yesterday’s price. That dual effect is what makes our model far more powerful.

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Execution Strategy

One Lump Buyback (1 × $100k): In a $580k pool at $6, a $100k buy → pushes price to ~$10.85. Acquires ~12,393 JEST, worth ~$134.5k at new price. Eective multiplier: 1.34×. Split Buyback (4 × $25k, executed back-to-back): Same result as 1 × $100k (Uniswap v2 constant product math).

Time-Separated Buybacks (weekly over a Season): Arbitrage and new LP liquidity reset pools between buys. Captures more tokens across time while sustaining upward price pressure. Healthier optics, reduces volatility, smooths Spoils distribution.

Dev’s Note: Splitting only matters if time passes between buys. By executing gradually, we maximize tokens captured, create continuous buy pressure, and avoid giant single-candle spikes. This approach is better for optics and token health. And aggressivly punishes sellers.