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

# Buyback & burn

**A buyback spends external value on the market.** OVRO spends ETH from raffle pools to buy $OVRO, then burns it.

## Flow

```
Round settles → 5% of the pool accrues as buyback ETH
             → forwarded to the Buyback Executor (anyone can trigger)
             → Executor buys $OVRO:
                  • on the Pons bonding curve (before graduation)
                  • in the Uniswap v4 pool behind the Pons hook (after graduation)
             → bought $OVRO is sent to 0x000000000000000000000000000000000000dEaD in the same transaction
```

## Genesis reserve

During Genesis there is no token yet, so the buyback share **accumulates in the raffle contract**. It is not a withdrawable balance: it can only leave through `fundBuyback` to the configured buyback executor, which is set at the one-time token activation and otherwise only through the 48-hour timelock. After the token activation the entire reserve is used to buy and burn $OVRO. The live reserve is shown on [ovro.fun](https://ovro.fun) → **● ONCHAIN**.

## Protection against bad trades

* **Minimum output.** Every buyback carries a minimum amount of $OVRO, taken from a fresh market quote.
* **On-chain floor.** The contract refuses a minimum below the configured slippage from the current market price (hard cap 15%), so a faulty automation cannot sell out the reserve.
* **Size cap.** A maximum amount of ETH per buyback limits price impact.
* **Separation.** The raffle holds no swap logic. The executor is a separate, verified contract, so ETH for players' prizes never passes through it.

## Track it

The executor emits `BuybackExecuted` (ETH spent, $OVRO bought) and `OvroBurned` events, and exposes `totalEthSpent`, `totalOvroBought` and `totalOvroBurned`. The site shows these totals under **● ONCHAIN**. Burned tokens are visible on the explorer at the burn address.


---

# 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 by asking a question.

Perform an HTTP GET request on the following URL with the `ask` and `goal` query parameters:

```
GET https://ovro.gitbook.io/ovro-docs/token/buyback.md?ask=<question>&goal=<user_goal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is what the user is ultimately trying to achieve, the reason they need the answer. Sharing it helps GitBook give you a better, more relevant answer. A goal is most helpful when it describes the outcome the user wants rather than restating the question. For example, with `ask=how do I create an API token`, a goal like `automate deployments from our CI pipeline` lets GitBook tailor the answer to that use case.

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.