Aave DAO Proposes $50M Annual Buyback Program To Strengthen Aavenomics And Market Stability
In Brief
Aave DAO has proposed a $50 million annual AAVE token buyback program, granting the Aave Finance Committee authority to manage reserves, support ecosystem growth, and formalize a systematic approach to value accrual and market stability.
Aave Chain Initiative, a delegate platform and service provider for the Aave DAO, has announced a proposal to establish a long-term AAVE token buyback program funded through protocol revenue. The program aims to set an annual budget of $50 million with flexible execution parameters, allowing the Aave DAO to strategically deploy capital to accumulate AAVE tokens and extend the current buyback initiative indefinitely.
The Aave Protocol has shown strong revenue generation and treasury growth, and with the expiration of the existing buyback program, the proposal seeks to formalize a systematic approach to further support Aavenomics. The program is designed to create consistent value accrual by generating steady buy pressure on AAVE tokens using protocol revenue, optimize treasury resources by converting idle assets into productive capital that supports ecosystem growth, and enhance market stability by providing programmatic demand with adaptive execution based on prevailing market conditions.
The proposed program outlines an annual budget of $50,000,000 and will be led by Tokenlogic in coordination with the Aave Finance Committee (AFC). Weekly AAVE purchases are planned within a range of $250,000 to $1,750,000, with the AFC holding discretion to adjust buyback volumes by up to 75% based on market conditions, liquidity, token price volatility, strategic timing, and available protocol revenue.
Aave Finance Committee Granted Authority To Manage Reserves And Finance Growth Initiatives
Under this framework, the AFC is authorized to manage AAVE, wBTC, and wETH reserves to support growth initiatives through debt creation, maintaining a minimum health factor of 2 or above according to required debt levels. The proposal grants the AFC authority to mobilize unstaked wETH from the Frontier program and collector-held BTC-equivalent reserves as collateral to finance growth initiatives. Additionally, the AFC may establish credit lines using the AAVE codebase, including main Aave instances and governance-approved forks, convert them into yield-bearing equivalents, and exercise vote delegation using its reserves.
The procedural next steps involve publishing a standard ARFC, collecting feedback from the community and service providers, and advancing the proposal to the ARFC snapshot stage. If the snapshot outcome is affirmative, the proposal will then proceed to an AIP vote for final confirmation and implementation.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
