Aave DAO proposes $50M annual token buyback using DeFi revenues
Aave DAO proposed a permanent, protocol-funded buyback program using up to $50 million in annual revenue to repurchase AAVE tokens.Summary
The Aave decentralized autonomous organization (DAO) has introduced a proposal, submitted by the Aave Chan Initiative (ACI), to establish a permanent, protocol-funded buyback program utilizing up to $50 million of its annual revenue to repurchase Aave (AAVE) tokens. The execution would be managed by the Aave Finance Committee (AFC) and TokenLogic, involving weekly repurchases ranging from $250,000 to $1.75 million, contingent on market conditions. This initiative aims to institutionalize buybacks as a recurring mechanism, shifting Aave toward a systematic, rule-based capital allocation strategy, building upon the success of prior buyback efforts, such as a recent $4 million buyback. The proposal must pass through the ARFC stage, a Snapshot vote, and final on-chain governance confirmation before implementation. This move precedes the anticipated Aave v4 upgrade, scheduled for Q4 2025, which will introduce a modular architecture and dynamic risk configurations.
(Source：Cointelegraph)