Aave is eyeing an annual token buyback of $50 million, to test whether Aavenomics can translate protocol revenue into price support.
Aave DAO is considering a major update to its token policy that would make buybacks a permanent part of its system.
A New proposal The post on Wednesday suggests setting up an annual $50 million AAVE token buyback using the protocol’s revenue.
(Source: AAVE Governance)
The plan, to be introduced by the Aave Chan Initiative (ACI), suggests purchasing between $250,000 and $1.75 million every week or so.
It will be managed by TokenLogic and the Aave Financial Commission (AFC), and the amount will vary depending on market conditions, liquidity and profits.
This will become a standard part of the Aave process, giving buybacks a permanent place, rather than the pilot program they currently are.
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Can Aave’s $169 million in annual revenue sustain a $50 million buyback?
The proposal states that the program will establish a long-term buyback of AAVE with the help of revenues generated through the protocol.
There will be a range of flexibility in the AFC, ranging from 75% of weekly amounts, subject to available funds and market trends.
The second step involves a quick poll, followed by an on-chain vote to implement the policy, if the poll is successful.
DeFiLlama Data It indicates that the protocol has received approximately $13.9 million in the past 30 days and at a rate of approximately $169 million annually.
(Source: Devilama)
This level of revenue would comfortably fund a $50 million annual buyback even after covering other operating expenses.
Early community feedback was mostly positive. Aave founder Stani Kulichov said he supports increasing the buyback goal to $50 million annually.
As of Press timeAAVE was trading near $218, down about 5% on the day, with prices fluctuating between $215 and $231.
Market reactions remain mixed, but a governance update drew attention to whether consistent buybacks could help stabilize the token amid broader volatility.
The proposal comes before Aave v4 is expected to be released In late 2025.
The upgrade will introduce a “hub-and-spoke” framework aimed at more efficiently pooling liquidity and managing risk across smaller market units, a structure that could impact the protocol’s revenue, and thus its ability to sustain buybacks.
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AAVE Price Forecast: Is AAVE heading towards the $135 “magnet” area highlighted by analysts?
Technically, the AAVE price chart indicates a squeeze. The token is struggling to hold key support levels.
Analyst Ali Martinez described The $135 level is considered a “magnet” for AAVE, suggesting that a break below current levels could lead to a deeper pullback.
The token collapsed below the medium-term support of $250, which received significant buying support earlier this year.
(Source: X)
On the technical level, a lower low and lower low pattern is now appearing on the chart, indicating a short-term decline.
The second support is near $215, but the introduction of the $135 area by analyst Ali Martinez suggests a larger correction could occur if sentiment remains weak.
This is a level that has traditionally been in high demand and is an area worth pursuing in the future.
Resistance is near the $360 area, where previous highs stalled. A sustained break above $250-$270 would turn the situation around and allow for a bounce.
Right now, the momentum is weak, and the repeated failure to reclaim $270 shows that the buyers are not in control.
Liquidity is poor, and traders continue to shift to Bitcoin and Ether. If AAVE cannot regain its previous support, a move towards $135-150 in the coming weeks is on the table.
The trend remains down as long as the price remains below $250. Traders are watching to see if AAVE can stabilize here or slide towards the lower demand area indicated by Martinez.
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