Aave DAO proposes $50M annual token buyback using DeFi revenues
The new proposal would make Aave’s $50 million annual buyback a permanent feature, expanding on the success of previous buyback initiatives.
Aave’s decentralized autonomous organization (DAO) has introduced a proposal to create a long-term, protocol-funded buyback program that would use up to $50 million in annual revenue to repurchase Aave tokens.
The proposal, submitted Wednesday by the Aave Chan Initiative (ACI), seeks to make buybacks a permanent component of Aave’s tokenomics. Under the plan, the Aave Finance Committee (AFC) and TokenLogic would lead the execution, repurchasing $250,000 to $1.75 million in Aave (AAVE) tokens weekly, depending on market conditions, liquidity and volatility.
If approved, the proposal will proceed through the Aave Request for Comment (ARFC) stage for community feedback, followed by a Snapshot vote and final onchain governance confirmation. Unlike short-term market interventions, the proposal aims to institutionalize buybacks as a recurring mechanism, essentially making the DAO an active capital allocator.
