Aave DAO proposes a permanent buyback plan to invest 50 million dollars annually

According to The Defiant, Aave DAO has approved a permanent token buyback program, allocating $50 million annually from protocol revenue for the repurchase of AAVE tokens. The proposal was put forward by the Aave Chan Initiative (ACI) on October 22 and passed with 100% approval.

Under the new plan, the Aave Financial Committee (AFC) and TokenLogic can repurchase AAVE worth between $250,000 and $1.75 million weekly, depending on market conditions and protocol revenue. Currently, Aave's total value locked (TVL) stands at $36.4 billion, with $12.7 million in revenue over the past 30 days.

This move makes Aave one of the few DeFi projects to adopt a permanent income buyback program. According to a Keyrock report, since 2024, token buybacks and revenue distribution have increased more than fivefold, with projects averaging a 64% return of revenue to holders, indicating that crypto projects are shifting towards prioritizing shareholder returns like traditional corporations.