Aave’s decentralized autonomous group has unveiled a proposal to introduce a recurring buyback program funded straight by protocol income.
The initiative, submitted by the Aave Chan Initiative, would allocate as much as $50 million every year to repurchase Aave tokens, turning buybacks right into a core ingredient of the mission’s monetary framework.
In accordance with the plan, the Aave Finance Committee and TokenLogic would handle the operations, buying between $250,000 and $1.75 million price of AAVE tokens weekly, relying on liquidity and broader market situations.
As soon as reviewed by the group and permitted by onchain governance, this system would signify a shift towards structured, long-term capital administration quite than short-term worth interventions.
The idea follows earlier buyback efforts, together with a $4 million repurchase in April that briefly boosted Aave’s token worth by 13%. A separate $20 million buyback was proposed final week as a short-term response to perceived undervaluation, however the brand new plan goals to institutionalize the method as a standing coverage throughout the DAO’s governance mannequin.
The initiative additionally comes forward of Aave’s anticipated v4 improve, anticipated in late 2025. The improve will introduce a modular “hub and spoke” design to enhance scalability and effectivity whereas enabling extra dynamic danger administration throughout the protocol’s multi-asset markets.
