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

# Recurring Ecosystem Support

Ascend allocates 40% of its purchased HYPE to protocol-owned staking. The resulting yield funds ecosystem-token buybacks, with the purchased tokens burned rather than distributed as user rewards.

This creates a recurring burn mechanism while building a protocol-owned staked HYPE position. The amount available for future buybacks depends on the size of the position, realized staking yield, and execution costs.

## Protocol-owned staking and ecosystem burns

All ecosystem tokens purchased from the yield of Ascend’s protocol-owned staking position are burned. They are not retained for treasury trading and are not redistributed as user rewards.

> **Protocol-owned HYPE → staking through Ascend → staking yield → ecosystem-token purchases → burn**

The protocol-owned HYPE remains staked. For this position, the burn applies only to ecosystem tokens purchased using its staking yield, not to the staked HYPE itself or tokens allocated for user distributions.

The separate **30% ecosystem-buyback allocation** purchases ecosystem tokens for Ascend’s treasury, with a small portion burned and treasury-held tokens used to help support eligible HyperCore listings. These tokens are not distributed to stakers. The **10% direct HYPE reward allocation** remains unchanged.

## Separate destinations, separate accounting

| **Source**                             | **Destination of ecosystem tokens**                                                                                              |
| -------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------- |
| Yield from user-owned kHYPE            | Distributed to eligible user stakers                                                                                             |
| 30% ecosystem-buyback allocation       | Retained in treasury, with a small portion burned; treasury-held tokens support eligible HyperCore listings, not staker airdrops |
| Yield from protocol-owned HYPE staking | **Burned**                                                                                                                       |

The burn policy does not change user-reward allocations. Treatment of protocol-owned positions in any other fee-funded reward pools remains subject to finalization.