> For the complete documentation index, see [llms.txt](https://docs.gage.cash/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.gage.cash/pool/buyback.md). # Buyback and burn Every protocol fee lands in USDG in the fee sink. From the day the token launches, the fee sink's route is **Buyback**. ## A clip 1. Anyone may trigger a clip once the fee sink holds more than the threshold, and earns a bounty from it. 2. USDG is swapped to ETH. 3. ETH buys GAGE on the launch pool. 4. GAGE buys sGAGE in the GAGE/sGAGE pool. 5. The sGAGE is burned. Each leg has a minimum output derived from the price before the swap and a 1% maximum impact. A clip that would trip the bound is halved and retried. ## What it does Every clip is a market buy of both tokens and a permanent cut to sGAGE supply, paid for by the vault's fees. This is the token's fundamental: fees in, supply out. The amount burned this week is shown wherever rewards are. ## Invariants * Buyback only buys and burns. It never sells GAGE or sGAGE and never exceeds the impact bound. * sGAGE supply only ever decreases. It was minted once and is burned by buybacks, by sweeps of the floor, and at the end of emissions. The route can be switched to a treasury by the registry's owner before the token launches. After launch, Buyback is the route. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.gage.cash/pool/buyback.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.