Aave DAO Considers Permanent $50M Annual AAVE Buyback Program

Aave DAO proposes a $50M annual AAVE buyback program funded by protocol revenue to strengthen Aavenomics and token value.
Table of Contents

TL;DR:

  • Aave DAO considers $50M annual buybacks to sustain token value and Aavenomics.
  • Weekly purchases of $250K-$1.75M, with flexibility based on revenue and market conditions.
  • DeFi protocols adopt buybacks for capital efficiency, token value capture, and market stability.

Aave DAO is evaluating a proposal from the Aave Chan Initiative (ACI) to formalize $50 million annual AAVE buybacks, aiming to make the program a permanent mechanism funded by protocol revenue. The initiative, founded by Marc Zeller, seeks to sustain long-term token value, optimize treasury reserves, and generate consistent buy pressure for AAVE.

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Program Details and Execution

The plan envisions weekly buybacks ranging from $250,000 to $1.75 million, executed jointly by Aave’s Finance Committee (AFC) and TokenLogic. Flexibility is embedded, allowing adjustments based on market conditions and available protocol revenue. The proposal also permits the AFC to leverage BTC and ETH reserves for initiatives like collateralized debt creation and yield-bearing conversions, further supporting the protocol’s growth.

Aave DAO considers $50M annual buybacks to sustain token value and Aavenomics

ACI cites the success of Aave’s previous buyback program as justification for the permanent strategy. With the expiration of the existing initiative, the DAO sees an opportunity to reinforce Aavenomics, ensuring a systematic mechanism for enhancing token value and creating predictable demand in the market.

DeFi protocols are increasingly adopting buybacks to improve capital efficiency and capture token value.Ā  Aave and Uniswap led a fee rebound to $600 million, while other projects such as Pump.fun and Raydium have followed similar buyback frameworks, reflecting a wider sector trend toward structured token repurchase strategies.

Aave continues to expand its institutional and real-world asset offerings, recently surpassing $25 billion in outstanding loans and launching Horizon, a stablecoin borrowing platform using tokenized assets. The protocol also integrates Maple Finance’s yield-bearing assets as new collateral, demonstrating Aave’s ongoing innovation and commitment to broadening DeFi access and liquidity options.

Despite recent market pressures, Aave remains a top performer, ranking second among DeFi protocols in monthly fees. AAVE prices fell slightly over 3% in the last 24 hours, but the proposed buyback program seeks to stabilize the token’s value and maintain investor confidence.

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