Aave’s community is weighing a $50 million annual buyback plan funded by protocol revenue, aiming to boost token value and strengthen its DeFi ecosystem.
Posted October 23, 2025 at 9:58 am EST.
The Aave DAO is considering a proposal to institutionalize a $50 million annual buyback program for AAVE tokens, funded entirely through protocol-generated DeFi revenues.
The initiative, spearheaded by the Aave Chan Initiative (ACI), seeks to make token repurchases a recurring part of Aave’s economic model.
The proposal calls for weekly buybacks ranging from $250,000 to $1.75 million, with flexibility to adjust based on liquidity, market conditions, and revenue levels. Execution would be overseen by the Aave Finance Committee (AFC) and TokenLogic.
This story is an excerpt from the Unchained Daily newsletter.
Subscribe here to get these updates in your email for free
Aave currently generates around $169 million in annual revenue from lending fees and other protocol activities, according to data from DeFiLlama, making the $50 million buyback target sustainable, while maintaining operational and reserve obligations.
Powered by WPeMatico
