Aave DAO proposes $50 million annual token buyback program funded by protocol revenue
Aave DAO is considering a proposal for a $50 million annual AAVE token buyback program funded by protocol revenue.Summary
The Aave DAO is reviewing a proposal from the Aave Chan Initiative (ACI) to establish a permanent $50 million annual buyback program for the AAVE token, funded directly by Aave's protocol revenue. This initiative aims to sustain long-term token value and create consistent buying pressure, building upon the success of previous buyback efforts. The plan details that the Aave Finance Committee (AFC) and TokenLogic would execute weekly buybacks ranging from $250,000 to $1.75 million, with flexibility to adjust based on market conditions. Furthermore, the proposal grants the AFC authority to use BTC and ETH reserves for future growth, including collateralized debt creation. This move aligns with a broader trend in DeFi where major protocols are reintroducing capital efficiency and token value capture mechanisms.
(Source：The Block)