Aave DAO approves AAVE buybacks as part of the broader Aavenomics overhaul

The Aave DAO has massively approved an 4 million dollars’ token redemption, launching the first phase of a larger initiative to revise the tokenomics of the protocol.

The Aave (GHOST) DAO officially has approved A redemption plan of $ 4 million in Aave tokens. The proposal was adopted with a consensus of 99.63%.

The proposal authorizes the AAVE financing committee, a committee supported by governance created to manage the Treasury and financial operations of Aave, to start buying AAV tokens on the free market, which will then be distributed to the ecosystem reserve of the protocol.

This first phase of the buyout program should last a month. In the event of success, it could turn into a six -month initiative with up to $ 1 million in weekly purchases. The progressive approach ensures that cash funds are deployed with caution, while allowing Ghost To start capturing your own secondary market tokens to strengthen the value of the ecosystem.

“While remaining extremely conservative with the Aave Treasury funds, the ACI considers that this proposal may require AFC to start a buy -back and distribution program immediately at the rate of $ 1 million / week for the first 6 months of the mandate,” said Marc Zeller, founder of the Aave Chan initiative, declared.

Zeller also said that the six -month -old calendar could be extended if the program worked well. He sharp To previous initiatives like Merit, which was originally planned for six months but which has been continuing for more than a year, adding that a similar extension is probably if the buyout initiative is delivered.

“The acquisitions are forever, the rate is just the one that the DAO has voted for the next 6 months to start slow and at a conservative rate. Just like merit, we have started for 6 months and now we are celebrating the 16th month of the program, it will be renewed.”

The buyout initiative is only an element of a sweeping proposal presented by Zeller and ACI on March 4 of this year. Nicknamed the upgrade of Aavevenomics, the plan also includes:

• Umbrella – A new risk mitigation system and liquidity management designed to prevent harmful banking cycles and optimize capital efficiency.
• Anti -GHO – An non -transferable reward token to improve incentives for GHO stable users and assistants.
• Extend the depreciation – a last step in the migration of the original Aave, Lend, Aave, which would recover approximately $ 65 million in non -claimed tokens for future use.

The community will continue to vote on future elements of the plan as technical development and audits are progressing. In his article on X, Zeller called This decision “an important step” and described the global plan as “the most important proposal in the history of Aave”.