> For the complete documentation index, see [llms.txt](https://jester.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://jester.gitbook.io/docs/tokenomics/favour/buybacks.md).

# Buybacks

**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.

{% hint style="info" %}
*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.*
{% endhint %}

***

### **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.\\

\
Effective 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.

{% hint style="info" %}
*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 aggressively punishes sellers.*
{% endhint %}