Aave DAO Proposes $50M Annual Token Buyback Using DeFi Revenues

Aave DAO has introduced a major proposal to establish a long-term $50 million annual buyback program for AAVE tokens, funded from the protocol’s DeFi revenue streams. Submitted by the Aave Chan Initiative, the proposal seeks to institutionalize buybacks as a recurring part of Aave’s tokenomics.

Under the plan, $250,000 to $1.75 million in AAVE tokens would be repurchased weekly, with execution managed by the Aave Finance Committee and TokenLogic.

The proposal is set to move through several governance stages, including community feedback, Snapshot voting, and final on-chain approval. The idea builds on Aave’s successful $4 million buyback in April, which saw the token rally by 13%. A previous short-term plan calling for an immediate $20 million repurchase also cited the token’s undervaluation.

If passed, the program would make Aave one of the first DAOs to adopt a structured, protocol-driven capital allocation model, positioning it as a sustainable DeFi powerhouse.

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