> For the complete documentation index, see [llms.txt](https://ark-defai.gitbook.io/ark/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://ark-defai.gitbook.io/ark/4.-layer-1-or-economic-laws-of-ark-defai/4.2-five-regulation-modules/4.2.3-yrf-module-or-yield-revenue-feedback/iii.-buyback-calculation-formula.md).

# III. Buyback Calculation Formula

```
Buyback Budget = Total Protocol Yield × Buyback Ratio
```

* **Total Protocol Yield**: The protocol's total weekly revenue (e.g., 10,000 USDT)
* **Buyback Ratio**: The allocation ratio set by the DAO (e.g., 30%)
* The final calculation determines the weekly/daily maximum buyback budget (e.g., 3,000 USDT)

#### Example Explanation:

* Protocol revenue: 10,000 USDT/week
* Buyback Ratio: 30%
* → Weekly buyback budget is 3,000 USDT ≈ 428 USDT daily
* If market price is 100 USDT/ARK → Approximately 4.28 ARK can be destroyed daily