Aave DAO proposes $50 million annual token buyback program funded by protocol revenue
Quick Take ACI, the Aave Chan Initiative, founded by Marc Zeller, has proposed a $50 million annual AAVE buyback program funded by protocol revenue. The plan would make Aave’s buybacks a permanent feature, reinforcing “Aavenomics” and adding consistent buy pressure on the token.
Aave DAO is weighing a proposal from the Aave Chan Initiative (ACI) — the DAO’s key service provider founded by Marc Zeller — to establish a $50 million annual AAVE token buyback program in a push to formalize the protocol’s existing buyback efforts.
Published on Wednesday, the plan outlines a strategy to embed buybacks as a permanent mechanism funded by Aave’s protocol revenue. The initiative aims to sustain long-term token value, optimize treasury reserves, and create consistent buy 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 stated, citing the success of Aave’s prior buyback campaign and the protocol’s strong revenue growth.
Under the plan, Aave’s Finance Committee (AFC) and TokenLogic would jointly execute the buybacks, purchasing between $250,000 and $1.75 million worth of AAVE weekly. Furthermore, the proposal allows for flexibility in adjusting based on market conditions and available protocol revenue. The ACI’s pitch also empowers the AFC to leverage BTC and ETH reserves for future growth initiatives, including collateralized debt creation and yield-bearing conversions.
Decentralized finance has experienced a broader wave of buyback activity across major protocols as they reintroduce capital efficiency and token value capture into their designs.
A recent report from The Block Research found that Aave and Uniswap have led a DeFi fee rebound to $600 million, with projects like Pump.fun and Raydium adopting similar token buyback frameworks too.
Aave has remained one of the sector’s strongest performers, recently surpassing $25 billion in outstanding loans while expanding into new institutional lending avenues. Recently, DeFi’s largest lender launched Horizon , a platform for stablecoin borrowing against tokenized real-world assets and its first non-EVM deployment on Aptos. Aave is also starting to integrate Maple Finance’s yield-bearing assets as a new type of collateral.
As of this month, Aave ranks second among DeFi protocols in monthly fees, according to The Block’s data dashboard. AAVE prices were down over 3% in the last 24 hours amid a general market downturn.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Wall Street sets a positive tone for the long-term prospects of AI; the Fed's interest rate path for October remains uncertain! Cooling US Treasury yields open a window for tech sector rebound?
Waller’s series of speeches at the IMF reinforced the view that cutting-edge AI technology will fundamentally reshape the economy in the long term, but he did not commit to a pause in rate hikes in October. For global semiconductor stocks, which have recently experienced heavy sell-offs and entered a correction phase, the positive aspect is that he did not further intensify short-term rate hike expectations.
Tesla's sports car can really fly!
Tesla's second-generation Roadster was unveiled at the SpaceX test site, marking a significant debut nine years after pre-orders first began in 2017. Mass production is scheduled for 2028. The new vehicle features a fan suction system and compressed air thrusters, enabling genuine "flight." Elon Musk confirmed that this will be Tesla's last model to support manual driving. Analysts predict that sales of 7,000 units in the first year could generate nearly $2 billion in revenue, with extremely high profit margins being its core commercial value.
Earnings season is here! Citadel Securities: The next few weeks will be the real stress test for U.S. stock fundamentals
The US stock market enters Q3 earnings season, with market expectations for S&P 500 earnings per share to grow 27% year-over-year, marking the third highest threshold ahead of earnings seasons since 2010. However, the growth is highly concentrated—Micron and Nvidia alone contribute 36% of expected gains. Retail investors’ weekly net buying surged to $9.1 billion, with semiconductor purchases reaching a historic peak. Citadel Securities warns that index volatility has fallen to its calmest range in nearly 30 years, while individual stock risks are quietly rising, making stock picking preferable to simply increasing index allocations.
Dangerous signal? CoreWeave founders cash out $3.3 billion after IPO
The founder's sell-off objectively avoided a 60% drop in share price, and some have already liquidated nearly 40% of their wealth. Behind this stark contrast, the company is burdened with a massive $52 billion debt, with a five-year default probability exceeding 60%. The current debt stands at $52 billion, and the cumulative negative free cash flow for 2026-2028 is projected to reach $71 billion. Its model of "borrowing at 9% interest to earn a 1% return" has been harshly criticized as the "subprime crisis" of the AI industry. The high-leverage computing power financing game is now facing the market's ultimate test.
Crypto prices
More
