# Buybacks and burns

Source: https://docs.mog.xyz/mog/buybacks-and-burns/

Markdown: https://docs.mog.xyz/mog/buybacks-and-burns.md

Reviewed protocol version: 6.0.1

Protocol review date: 2026-09-18

Scope: reviewed public documentation. Numerical examples use illustrative or launch settings; they are not live quotes or a guarantee of current deployed parameters. Consult the app for current market and position values.

Mog allocates trading revenue to buying and burning MOG. Burns permanently remove purchased tokens from supply.

## What funds buybacks?

At launch, **70% of settlement fees** is allocated to buybacks. The remaining 30% funds protocol operations.

Above **2 million USDG of available treasury equity**, a growing share of net treasury growth also funds buybacks. Earlier deficits must be recovered before new growth qualifies.

More equity, a larger buyback allocation

The allocation rate is zero through 2 million USDG of available treasury equity, 50 percent at 6 million, and 80 percent at 10 million.

Launch formula: `excess = max(F - 2000000, 0)`; `allocation = excess² / (excess² + 4000000²)`. F is available treasury equity in USDG. The fraction applies to eligible net treasury growth after settled profits and recovery of prior deficits, not to all treasury funds.

| Available treasury equity (USDG) | Eligible growth allocated to buybacks |
| -------------------------------- | ------------------------------------- |
| 2,000,000                        | 0%                                    |
| 6,000,000                        | 50%                                   |
| 10,000,000                       | 80%                                   |

Applies to eligible net cash growth after settled profits and prior deficits.

**View the allocation curve**

$$
z=\max(F-F_1,0),\qquad g(F)=\frac{z^2}{z^2+G^2}
$$

$F$ is [available treasury equity](https://docs.mog.xyz/trading/maximum-payout/#available-treasury-equity). At launch, the threshold $F_1$ is 2 million USDG and the scale $G$ is 4 million USDG. Both settings are governable.

## From revenue to burns

How buybacks work

1. Fund: Pay the buyback wallet.
2. Buy: Purchase MOG.
3. Burn: Remove purchased tokens.

Trader payouts take priority. The buyback allocation is paid only when trader claims, including claims used as collateral, remain fully cash-covered. Purchases then depend on the operator and market liquidity.

MOG's price depends on market conditions. See [Token risks](https://docs.mog.xyz/risk/#usdg-and-mog).