Aave DAO outlined a 50 million dollar yearly program to buy back its AAVE token using fees the protocol earns. The initiative aims to slow token supply growth and influence investors, stakers and DeFi treasury managers. It sits within the Aavenomics roadmap and relies on the protocol’s existing income.
The plan is framed as part of “Aavenomics” and uses the protocol’s income. Documents indicate the protocol collects about 65 million dollars in yearly fees and keeps roughly 50 million dollars as profit.
A six-month pilot ran with weekly buys of one million dollars in AAVE to observe market reaction. The governance vote passed with 99.63% in favor, and two internal groups — the Aave Finance Committee and TokenLogic — now run the purchases and decide how to split the budget. To stabilize execution, the plan uses Ekubo TWAMM, which breaks large orders into smaller ones and spreads them over time to limit price impact.
Program design and execution
News of the program pushed AAVE up between ten and twenty percent on multiple days. The move also aligns with a broader trend where protocols route revenue back to their tokens and add assets like stETH to lending pools, tightening links across platforms.
Steady purchases add weekly buyers and remove tokens from the open market, so stakers and holders may gain in the short or medium run. Large buys require careful tooling; TWAMM lowers slippage but adds extra steps that The DAO can stop or change the plan at any time through a new vote, and every action remains on record for the community.
The DAO describes the program as a standing rule inside Aavenomics, yet any future vote can alter or cancel it. Next steps are to monitor weekly buys, test tools like TWAMM, and publish updates for community review, tracking how the market responds over time.
