Aave launches token buyback mechanism, with a buyback budget of 4 million dollars in the first month.

On April 9, according to Aave’s official governance page, Aave DAO’s plan to authorize the Finance Committee (AFC) with $4 million equivalent of aEthUSDT to launch the first phase of the Aavenomics buyback and distribution program was approved. The program aims to repurchase AAVE from the open market and distribute it to the ecosystem reserve, thereby enhancing governance incentives and protocol health. This initial authorization will support a buyback operation for approximately one month, while allowing a buffer time for future deployments of new Aave Swapper contracts. The full program is expected to continue at a pace of up to $1 million per week over a six-month period. The proposal enables AFC to begin the first phase of the buyback program, approving $4 million in aEthUSDT for approximately a month’s worth of AAVE buybacks. By setting an authorization limit instead of a direct transfer, the proposal ensures the safety of funds while allowing AFC to efficiently execute buybacks within governance approvals, helping to steadily advance the implementation of Aavenomics.