Aave DAO Passes Proposal for Permanent Buyback Program to Invest $50 million Annually

According to The Defiant, the Aave DAO has approved a permanent token buyback program, allocating $50 million annually from the agreement revenue to buy back AAVE tokens. The proposal was introduced by the Aave Chan Initiative (ACI) on October 22 and passed with 100% approval. Under the new program, the Aave Finance Committee (AFC) and Token Logic can buy back $250,000 to $1.75 million worth of AAVE per week, depending on market conditions and agreement revenue. The total value of Aave lock-ups (TVL) is currently $36.40 billion, with revenue of $12.70 million in the past 30 days. The move makes Aave one of the few DeFi projects to adopt a permanent revenue buyback program. According to the Keyrock report, token buybacks and revenue distribution have increased more than fivefold since 2024, with projects returning an average of 64% of their revenue to holders, indicating that crypto projects are shifting towards traditional corporate preferred shareholder returns.