Aave Seeks to Institutionalize Token Buybacks With $50 Million Plan
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Aave’s decentralized autonomous organization has unveiled a proposal to introduce a recurring buyback program funded directly by protocol revenue.
The initiative, submitted by the Aave Chan Initiative, would allocate up to $50 million each year to repurchase Aave tokens, turning buybacks into a core element of the project’s financial framework.
According to the plan, the Aave Finance Committee and TokenLogic would manage the operations, acquiring between $250,000 and $1.75 million worth of AAVE tokens weekly, depending on liquidity and broader market conditions.
Once reviewed by the community and approved through onchain governance, the program would represent a shift toward structured, long-term capital management rather than short-term price interventions.
The concept follows earlier buyback efforts, including a $4 million repurchase in April that briefly boosted Aave’s token price by 13%. A separate $20 million buyback was proposed last week as a short-term response to perceived undervaluation, but the new plan aims to institutionalize the process as a standing policy within the DAO’s governance model.
The initiative also comes ahead of Aave’s anticipated v4 upgrade, expected in late 2025. The upgrade will introduce a modular “hub and spoke” design to improve scalability and efficiency while enabling more dynamic risk management across the protocol’s multi-asset markets.
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