AAVE DAO Approves $4 Million Buyback Plan to Enhance Ecosystem and Governance Incentives

According to an announcement from COINOTAG News dated April 9th, Aave’s governance community has successfully ratified a pivotal proposal. This initiative empowers the Aave Finance Committee (AFC) to allocate $4 million in aEthUSDT for the inaugural phase of the strategic Aavenomics buyback and distribution framework. Aimed at fortifying governance incentives and enhancing the overall health of the protocol, this plan focuses on acquiring AAVE tokens from the open market for ecosystem reserves. The endorsement authorizes a buyback initiative spanning approximately a month, synchronizing with the upcoming deployment of the innovative Aave Swapper contract. Anticipated to unfold over six months, the comprehensive strategy projects a buyback cadence of up to $1 million weekly. Importantly, by instituting an authorized budget rather than a direct transfer, the proposal enables efficient fund management, ensuring the security of assets while facilitating Aavenomics’ progressive rollout.