Aave DAO Proposes $50M Annual Token Buyback Using DeFi Revenues

Why It Matters

If approved, the policy could tighten circulating supply, bolster token price support, and signal a sustained shift toward allocating revenue to shareholder-style returns, while raising governance and treasury-use implications for the DAO.

Summary

Aave DAO has proposed making a $50 million annual AAVE token buyback a permanent program, funded from decentralized finance revenues generated by the protocol. The move formalizes and expands on earlier one-off buybacks aimed at using protocol income to repurchase tokens and retire supply. If approved, the policy could tighten circulating supply, bolster token price support, and signal a sustained shift toward allocating revenue to shareholder-style returns, while raising governance and treasury-use implications for the DAO.