Aave DAO proposes $50M annual buyback

Aave's decentralized autonomous organization (DAO) has proposed a program to create a long-term, protocol-funded buyback initiative using up to $50 million in annual revenue for repurchasing Aave tokens. Submitted by the Aave Chan Initiative, the plan aims to institutionalize buybacks as a permanent feature within Aave’s token economics. The Aave Finance Committee and TokenLogic would oversee the execution, buying back between $250,000 to $1.75 million in tokens weekly based on market conditions. This initiative follows an earlier proposal for an immediate $20 million buyback, signaling Aave's shift from temporary interventions towards systematic capital allocation strategies. The buyback framework aligns with Aave's expectations for a significant v4 upgrade in Q4 2025, which will introduce new economic architectures and customizable lending markets. The proposal currently needs community feedback and will eventually lead to a formal vote.

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