Aave is preparing a new $50 million token buyback program.
Date: 2025-10-23 Author: Oliver Abernathy Categories: BUSINESS
The Aave decentralized autonomous organization is considering an initiative to launch an annual $50 million AAVE token buyback program. Funding is planned to come from the protocol's revenue.
The proposal was put forward by the Aave Chan Initiative, a key participant in the ecosystem. The authors noted that the previous buyback program was successful, and now is the time to make this instrument permanent. They claim the new scheme will strengthen Aavenomics' financial model and increase the sustainability of the ecosystem.
The proposal specifies that buybacks will be conducted weekly, with amounts ranging from $250,000 to $1.75 million, depending on market conditions and current revenue. The Aave Finance Committee (AFC), in conjunction with the analytics platform TokenLogic, will oversee the program.
Furthermore, the initiative envisages expanding the AFC's investment opportunities. The committee will be authorized to use a portion of its Bitcoin and Ethereum reserves to participate in income-generating strategies, such as issuing collateralized debt or converting them into assets that generate regular income. This approach, according to the authors, will improve capital efficiency and ensure stable revenues for the protocol's treasury.
At the time of publication, the AAVE token is trading at $221, down 1.8% in 24 hours. Despite the localized correction, the initiative could have a positive impact on the long-term price dynamics.
According to CoinGecko, since the beginning of 2025, crypto projects have spent approximately $1.4 billion on token buyback programs. The largest volume was spent by the decentralized exchange Hyperliquid, at $644 million, equivalent to 46% of all spending in this category. This is comparable to the combined buyback volume of the other nine top cryptocurrency exchanges.
LayerZero took second place, announcing in September a buyback of 5% of its ZRO token supply worth $150 million. Pump.fun rounded out the top three, having allocated $138.17 million for this purpose.
Earlier in September, the team behind the gaming sidechain Ronin also announced a buyback of approximately $4.6 million, highlighting the growing popularity of this practice among crypto projects.
Thus, Aave's initiative reflects a general trend in the industry—strengthening the internal economy and increasing user trust through systemic token buyback programs.
