Aave Initiates Token Buyback Mechanism, with a First-Month Buyback Budget of $4 Million

BlockBeats News, April 9th, according to the Aave official governance page, an Aave DAO proposal to authorize the Aave Finance Committee (AFC) to use $4 million equivalent of aEthUSDT for the first phase of the Aavenomics buyback and distribution plan has been approved. The plan aims to buy back AAVE from the open market and distribute it to the ecosystem reserves to enhance governance incentives and protocol health.

This initial authorization will support approximately a month-long buyback operation, while allowing buffer time for the future deployment of the new Aave Swapper contract. The full plan is expected to proceed over six months at a pace of up to $1 million per week.

This proposal enables the AFC to begin executing the first phase of the buyback plan, approving $4 million of aEthUSDT for approximately one month of AAVE buybacks.

By setting an authorized amount instead of a direct transfer, the proposal ensures fund security and allows the AFC to efficiently carry out buybacks within the governance-approved scope, helping to steadily advance the implementation of Aavenomics.