Aave Unveils $1M Weekly Buyback Plan to Boost AAVE Tokenomics

Aave, a leading decentralized finance (DeFi) platform, has unveiled a strategic governance proposal that aims to enhance its tokenomics and introduce a $1 million weekly buyback plan. The proposal, presented by Marc Zeller, a significant service provider within the Aave DAO ecosystem, focuses on improving the AAVE tokenomics, reallocating protocol surplus income, and phasing out the LEND token. It also emphasizes the importance of enhancing AAVE's secondary liquidity management.

The proposal introduces a protective measure called Umbrella, designed to safeguard Aave users. It suggests allocating surplus income from the Aave DAO to support Umbrella aToken stakeholders, encouraging growth. Additionally, the proposal highlights strategic avenues within the Layer 2 (L2) ecosystem to optimize revenue sources for Aave's ongoing expansion.

The plan allows Tokenlogic to grant token approvals to AFC, facilitating efficient fund management via monthly AIPs. This collaboration enables AFC to engage with market makers to acquire AAVE tokens in the secondary market, subsequently channeling these assets into the ecosystem reserve. ACI anticipates that the adoption of this proposal could instigate an AAVE buyback and distribution strategy, potentially mobilizing $1 million each week for the initial six months post-approval.