FiatExDocs

Protocol mechanics

Periodic buyback and burn

Reserve part of creator tax, accumulate quote assets, and use eligible batches to buy and burn the launched token.

From a trading fee to a burn

The creator chooses the buyback share at launch. Each trade pays the wallet and platform portions or records a deferred fee credit if payment fails. The buyback portion stays queued for that token as quote-asset claims in Uniswap v4’s PoolManager.

A later transaction spends part of that queue on the same token pool. The hook receives the purchased tokens and burns them, reducing ERC-20 total supply. It does not merely transfer them to a dead-address balance.

The internal buyback does not charge another creator tax or platform fee. It still moves the pool price and costs gas. Unspent quote remains queued if the price limit allows only a partial purchase.

When a batch can execute

CheckFixed rule
Price historyAt least 15 minutes
CooldownAt least 5 minutes since the token’s last successful buyback
Batch amountNo more than the queue or 1% of the position’s current principal quote reserve
Purchase priceAt most 295 ticks, roughly 3%, above the time-weighted reference

The contract also caps the amount at the swap integer limit. A batch needs a positive input and output. Empty queues, an exhausted reserve, or an unacceptable price leave the fees waiting.

The reference uses cumulative ticks observed by the hook. With sparse trading, its interval can be longer than 15 minutes. It is not an exact sliding 15-minute average.

Automatic scheduling needs a caller

Anyone can call executeBuybackAndBurn(token) and pay the gas. The call takes no recipient, caller-selected price, or withdrawal amount. A keeper can check periodically and submit eligible transactions without asking buyers to sign again.

The keeper’s timer is not a guarantee that a burn happens every minute or every five minutes. Price checks, gas budgets, RPC availability, indexing delays, or insufficient funds can postpone it. The current published setup does not activate the keeper.

Neither the creator nor the keeper has a function to withdraw queued buyback quote. Each token has its own queue, including when several tokens share the same quote currency.

Read the queue separately from the result

The token page shows queued quote, quote spent, tokens burned by buybacks, current supply, and recent execution transactions. Total burned supply can also include holders burning their own tokens.

A large queue is not evidence of a completed purchase. Check the burn history and receipt for the actual quote spent and tokens burned.

Buybacks can be arbitraged or sandwiched within the allowed price limit. A trader can sustain a manipulated price across the observation period, especially in thin liquidity. A burn does not guarantee a higher price or a profitable exit.

Read the keeper operations guide