Aave DAO has initiated discussions on a long-term token buyback program for a significant amount—up to $50 million. To implement this initiative, it is planned to use the protocol’s revenue, with AAVE token buybacks occurring weekly on the open market in the range of $250,000 to $1.75 million.
This is reported by Business • Media
Governance Mechanism and Implementation Stages
The idea of a continuous buyback comes from the Aave Chan Initiative (ACI), which proposes to make this practice an integral part of the DAO’s tokenomics. The Aave Financial Committee (AFC) will work on implementing the program alongside the TokenLogic analytical group. They will determine the buyback volumes weekly, taking into account the current liquidity and market volatility.
The proposal’s approval will follow a standard decentralized governance cycle:
- Aave Request for Comment (ARFC) – an open discussion and collection of comments from the community;
- A free vote for token holders to capture the community’s opinion;
- A final on-chain vote, after which the decision takes effect at the blockchain level.
Benefits of the New Program and Impact on Tokenomics
Unlike one-off market interventions, the proposed mechanism aims to make Aave DAO a permanent player in capital management. According to the vision of the initiators, this will allow for a systematic approach to revenue redistribution and enhance the demand stability for the token.
ACI noted that the proposal is based on the success of previous buybacks. In April 2025, the AAVE token rose by 13% after a short-term buyback of $4 million, approved by the community.
The annual buyback program is the next step following a previous initiative, which involved a one-time buyback of $20 million. At that time, community members emphasized the token’s undervaluation compared to its fundamental metrics and the excess liquidity in the treasury.
The current scheme aims to replace temporary solutions with a permanent tool integrated into the treasury and DAO governance model. The program’s launch occurs against the backdrop of preparations for the release of Aave v4, expected in Q4 2025. The update includes the implementation of a modular architecture with liquidity aggregation through “hubs” and flexible risk adjustments for multi-asset portfolios.