Aave DAO Proposes $50 Million Annual Token Buyback Funded By Protocol Revenue

• The initiative would fund token purchases through protocol revenue to support long-term value. 
• Weekly buybacks would range between $250,000 and $1.75 million, with adjustments allowed for market conditions. 
• If approved, the initiative would position Aave as one of the first major DeFi platforms to formalize an annual buyback program.

Aave (AAVE) DAO is reviewing a proposal from the Aave Chan Initiative (ACI), the protocol’s primary service provider – founded by Marc Zeller – to implement a $50 million annual AAVE token buyback program. 

The plan would formalize the protocol’s existing buyback efforts, making them a permanent feature of Aavenomics.

Embedding Buybacks Into Protocol Strategy

The proposal, published Wednesday, outlines a strategy to fund buybacks through Aave’s protocol revenue. The initiative is designed to sustain long-term token value, optimize treasury reserves, and create consistent buying pressure for AAVE. “With the expiry of the existing buyback initiative, and the strong success of the program, we think it is an opportune time to enshrine a buyback program to further enhance Aavenomics,” the proposal said.

Under the plan, Aave’s Finance Committee (AFC) and TokenLogic would jointly carry out weekly purchases ranging from $250,000 to $1.75 million of AAVE. The program allows adjustments depending on market conditions and available protocol revenue. 

The ACI proposal also grants the AFC authority to leverage Bitcoin (BTC) and Ethereum (ETH) reserves for future initiatives, including collateralized debt creation and yield-bearing conversions, offering flexibility to support protocol growth.

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