Aave DAO has announced an initiative to launch a long-term buyback program for Aave (AAVE) tokens worth up to $50 million. The implementation of this program will be funded by the protocol’s revenues and will precede the anticipated launch of Aave v4 in the fourth quarter of 2025.
This is reported by Finway
Details of the Buyback Program
The program involves regular weekly purchases of AAVE tokens on the open market. The buyback amount will range from $250,000 to $1.75 million per week, allowing for more flexible responses to market volatility and liquidity levels. The initiative is led by the Aave Chan Initiative (ACI), which proposes to make buybacks a permanent tool in the protocol’s economic model.
The management of the program will be overseen by the Aave Financial Committee (AFC) along with the analytical group TokenLogic. They will determine the buyback volumes weekly, taking into account the current market situation.
Implementation Stages and Goals of the Initiative
After publication, the proposal will undergo several stages of decentralized governance:
- Discussion within the Aave Request for Comment (ARFC) to gather feedback from the community;
- Voting by token holders without gas fees to determine support for the initiative;
- Final on-chain voting at the blockchain level, after which the changes will take effect.
Unlike one-off interventions, this mechanism will make Aave DAO an active participant in capital management and provide a systematic approach to revenue distribution. The initiators are confident that this will strengthen trust in the tokenomics and create sustainable demand for the token.
ACI noted that the proposal is based on the success of previous buybacks. In April 2025, the AAVE token rose by 13% after a short-term buyback of $4 million approved by the community.
The previous initiative involved a one-time buyback of $20 million. At that time, the community emphasized the undervaluation of the token relative to fundamental indicators and the excess liquidity in the DAO treasury.
The new approach aims to replace temporary solutions with a long-term mechanism integrated into the treasury and DAO governance system. The launch of the program occurs ahead of the release of Aave v4, which will implement a modular architecture for liquidity aggregation through “hubs” and the ability to flexibly adjust risks for multi-asset portfolios.