{"id":106904,"date":"2025-10-22T19:49:52","date_gmt":"2025-10-22T19:49:52","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=106904"},"modified":"2025-10-22T19:49:52","modified_gmt":"2025-10-22T19:49:52","slug":"major-aavenomics-update-will-buyback-proposal-pump-aave-price","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=106904","title":{"rendered":"Major Aavenomics Update: Will Buyback Proposal Pump AAVE Price?"},"content":{"rendered":"

Aave eyes a $50M annual token buyback, testing whether \u201cAavenomics\u201d can translate protocol revenue into price support.<\/span><\/p>\n

The Aave DAO is considering a major update to its token policy that would make buybacks a permanent part of its system.\u00a0<\/span><\/p>\n

A <\/span>new proposal<\/span><\/a> posted on Wednesday suggests setting up an annual $50M AAVE token buyback using the protocol\u2019s revenue.<\/span><\/p>\n\n

(<\/span>Source: AAVE Governance<\/span><\/a>)<\/span><\/p>\n

The plan, to be introduced by the Aave Chan Initiative (ACI), suggests purchasing between $250,000 and $1.75 million every week or so.\u00a0<\/span><\/p>\n

They would be managed by TokenLogic and the Aave Finance Committee (AFC), and the sum would vary depending on market conditions, liquidity, and earnings.\u00a0<\/span><\/p>\n

This would become a standard part of the Aave operation, granting buybacks a permanent place, rather than the pilot program they are currently.<\/span><\/p>\n

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Can Aave\u2019s $169M Annual Revenue Sustain a $50M Buyback?<\/h2>\n

The proposal suggests that the program would establish a long-term repurchase of AAVE with the help of revenue generated through the protocol.\u00a0<\/span><\/p>\n

There would be a range of flexibility in the AFC, between 75% of the weekly amounts, subject to available funds and market trends.\u00a0<\/span><\/p>\n

The second step involves a Snapshot poll, followed by an on-chain vote to implement the policy, in the event of a successful poll.<\/span><\/p>\n

DeFiLlama <\/span>data<\/span><\/a> indicate that the protocol has received approximately $13.9M within the past 30 days and a rate of roughly $169M per year.\u00a0<\/span><\/p>\n\n

(<\/span>Source: DeFiLlama<\/span><\/a>)<\/span><\/p>\n

That level of revenue would comfortably fund a $50M yearly buyback even after covering other operational expenses.<\/span><\/p>\n

Early community feedback has been mostly positive. Aave founder Stani Kulechov stated that he supports increasing the buyback target to $50 million per year.\u00a0<\/span><\/p>\n

As of <\/span>press time<\/span><\/a>, AAVE was trading near $218, down approximately 5% for the day, with prices fluctuating between $215 and $231.<\/span><\/p>\n

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