In a significant move for the Aave ecosystem, the Aave DAO has approved a $4 million buyback of AAVE tokens.
The Aave DAO has approved a proposal to buyback AAVE tokens with 99.63% of votes in a significant move for the protocol. The proposal, introduced by Marc Zeller, founder of the Aave Chan Initiative (ACI), allows the Aave Finance Committee (AFC) to begin purchasing AAVE on the open market and redistribute them to the protocol’s Ecosystem Reserve.
The buyback program will start with a one-month pilot. If successful, it will continue for six months with $1 million in weekly token purchases. This conservative approach is part of a broader Aavenomics proposal to improve Aave’s economic resilience, risk management, and user incentives.
The Aavenomics proposal, part of which was introduced on March 4, also includes structural changes like Umbrella and Anti-GHO, designed to mitigate risks related to GHO (GHO) and promote long-term sustainability.
Each element of the Aavenomics proposal will be subject to community votes as development milestones and audits are completed.
This vote marks a significant step forward in Aave’s evolution, combining financial prudence with bold innovation to strengthen the protocol and benefit all stakeholders.
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