Buyback and Burn Explained: How Token Burns Work on a Solana Launchpad
A buyback and burn uses money to buy a token and then destroys what it bought. On JetForge every token has its own buyback vault, filled automatically by 20% of its trading fees. Anyone can trigger a burn once the vault holds 0.1 SOL, and it fires on its own at 0.3 SOL.
- Funding: 20% of every 1% trading fee, kept separately for each token.
- Trigger: any user from 0.1 SOL in the vault; automatic at 0.3 SOL.
- Effect: the vault's SOL buys tokens from the bonding curve, and those tokens are burned forever.
- At graduation, leftover vault SOL goes into the Raydium pool.
How a burn works, step by step
- Every buy and sell on the token's bonding curve pays a 1% fee. 0.4% goes to the creator, 0.4% to the platform and 0.2% to the token's buyback vault.
- When the vault holds at least 0.1 SOL, the token page shows a Burn button.
- Pressing it sends the vault's SOL into the bonding curve, exactly like a buy with no fee. The price rises along the curve, and the SOL counts toward the token's 85 SOL graduation target.
- The tokens that SOL bought are burned straight from the curve's supply, so they can never be sold.
The person who presses Burn pays only the Solana network fee. They are not paid from the vault; the benefit goes to everyone holding the token.
How fast the vault fills
| Trading volume on the curve | Buyback vault |
|---|---|
| 50 SOL | 0.1 SOL: Burn button appears |
| 150 SOL | 0.3 SOL: burns automatically |
| 500 SOL | 1 SOL in total, spent across several burns |
The vault receives 0.2% of volume (20% of the 1% fee). Each burn empties the vault, so it refills from zero.
How much a burn moves the price
A 0.1 SOL burn raises the price by about 0.7% on a new token (when the curve holds little SOL) and by about 0.2%on a token that is most of the way to graduating. Burns are steady support, not a pump: across a token's life they add up to about 0.2% of its trading volume.
Why burns are kept small
Each burn spends the whole vault in one trade. If a vault were allowed to grow large, a bot could buy just before the burn and sell just after it, taking the price move that the burn was meant to give holders (a "sandwich"). On JetForge's curve that trick earns nothing at 0.3 SOL or less but becomes profitable for bigger burns, so JetForge burns automatically at 0.3 SOL and lets users burn earlier, from 0.1 SOL.
What happens at graduation
Burns only run while the token is on its bonding curve. When the token graduates, any SOL still in its buyback vault is added to the Raydium pool, so it still supports the token as deeper liquidity. Read what happens when a token graduates.
What a buyback cannot do
A burn cannot stop a large holder from selling, and it does not guarantee the price will rise. It is a small, transparent mechanism that turns part of every trade into permanent buying. Before buying any token, still check its holders and creator: see how to avoid Solana rug pulls.
Frequently Asked Questions
What is a buyback and burn?
A buyback and burn uses money to buy a token on the market and then destroys the tokens bought, so they can never be sold again. It adds buying pressure and reduces the supply.
Where does the buyback money come from on JetForge?
From trading fees. Every trade on a JetForge bonding curve pays a 1% fee, and 20% of that fee (0.2% of the trade) goes into that token's own buyback vault.
Who can trigger a burn?
Anyone. Once a token's buyback vault holds 0.1 SOL, any user can press Burn on the token page and pay only the network fee. If nobody does, JetForge triggers it automatically when the vault reaches 0.3 SOL.
Does a burn make the price go up?
A burn is a buy, so it pushes the price up along the bonding curve, by about 0.7% for a 0.1 SOL burn on a new token and about 0.2% later in the curve. It is a small, steady support, not a pump.
What happens to the buyback vault when a token graduates?
Any SOL still in the vault is added to the token's Raydium pool, making the pool deeper. Burns stop once the token has graduated.
1% trading fee, 40% of it to the creator, per-token buyback and burn, and graduation to Raydium at the curve's final price.