> For the complete documentation index, see [llms.txt](https://elysia.gitbook.io/elusd/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://elysia.gitbook.io/elusd/el-point-and-referral/buybacks-and-distribution.md).

# Buybacks & Distribution

At the end of each Season, EL Points determine how EL from the buyback pool is distributed among users.

#### 4.1 EL Buybacks

The protocol uses a portion of the yield generated by the ELUSD strategy to buy EL on the market.

* Buybacks are executed periodically, based on realized ELUSD strategy revenue.
* The exact buyback rate and timing (e.g., percentage and frequency) are not disclosed.
  * This is intended to reduce the risk of users attempting to game specific buyback moments.
  * The goal is to keep the reward flow fair over time, so that long-term participants can benefit in a more balanced way.

#### 4.2 Seasonal EL Distribution

When a Season ends, the portion of EL designated for rewards is distributed in proportion to EL Points.

* During Season N:
  * Total EL Points across all users: `TOTAL_POINTS`
  * A given user’s cumulative EL Points: `USER_POINTS`
  * Total EL purchased via buybacks: `Total_EL_Pool`
  * Portion of Total\_EL\_Pool allocated for rewards: `Distributed_EL_Pool`
* User distribution formula `User’s EL reward = Distributed_EL_Pool × (USER_POINTS / TOTAL_POINTS)`
* After distribution:
  * All EL Points are reset to 0 and a new Season begins

Only the portion of EL designated as Distributed\_EL\_Pool is used for Season N rewards. Any remaining EL from Total\_EL\_Pool may be reserved for long-term ecosystem purposes (e.g., treasury, liquidity support, or potential burn mechanisms).