The largest DeFi lending protocol will continue to use revenue to repurchase AAVE tokens.<\/p>\n
The Aave<\/a> DAO has approved a proposal to make its AAVE buyback program permanent, allocating $50 million per year from protocol revenue to repurchase tokens.<\/p>\n The proposal<\/a>, authored by the Aave Chan Initiative (ACI) and revealed on Oct. 22, 2025, was passed with 100% \u201cYae\u201d votes. The plan is part of Aave\u2019s long-term \u201cAavenomics\u201d to increase the value of the AAVE token and strengthen the project\u2019s treasury. It also continues Aave\u2019s previous buyback program indefinitely. <\/p>\n Aave is currently the largest decentralized finance (DeFi) protocol with a total value locked (TVL) of $36.4 billion, according to DeFiLlama. It has recorded $12.7 million in revenue over the past 30 days. <\/p>\n Meanwhile, AAVE is currently trading at $200.54, down 10.9% on the day amid a broader market downturn, per CoinGecko data. <\/p>\n Under the new plans, the Aave Finance Committee (AFC) and TokenLogic can buy between $250,000 and $1.75 million worth of AAVE each week. The amount will depend on market conditions and how much revenue the protocol is generating.<\/p>\n \u201cThe Aave Protocol has demonstrated strong revenue generation and treasury growth,\u201d the proposal reads. \u201cWith the expiry of the existing buyback initiative, and the strong success of the program, we think it is an opportune time to enshrine a buyback program to further enhance Aavenomics.\u201d <\/p>\n The move makes Aave one of the few major DeFi projects that will run a permanent buyback program funded by revenue. The AFC will also be allowed to use Aave’s wETH and BTC reserves to support new growth initiatives. <\/p>\n A recent report<\/a> by WisdomTree Prime noted that, in addition to Aave, protocols like Hyperliquid, Jito, and Lido<\/a> are also experimenting with on-chain token buybacks or have proposed doing so.<\/p>\nWeekly Buybacks<\/h2>\n
Broader Shift<\/h2>\n