Aave is set to launch its $1 million token buyback plan this month, according to a statement. According to the founder of Aave Chain Initiative (ACI), the proposal is set to go live after it passes the quorum. In his post on X, he added that the implementation of the Aavenomics could start this month.
Aavenomics is a proposal to revamp the Aave tokenomics to allow a fee switch, which will allow revenue sharing between the protocol and participants. Under the program, those who stake Aave tokens will be able to get rewards through a buyback program.
Through its Buy and Distribute initiative, the protocol will buy back tokens worth $1 million for six months, distributing them to users that staked their Aave. The proposal has enjoyed community support, with Aave founder hailing it as the most important proposal in ACI history.
Aave token drops 50% despite positive news
The support for the snapshot vote shows that the proposal could become active soon. Many expect this to have a massive impact on AAVE value, noting that the $1 million weekly buyback creates a constant demand pressure for the token, which could boost its price.
The news also adds to an array of positive news that the protocol has witnessed, with the last one dating back to 2024. The platform has grown to become the biggest DeFi platform, seeing a TVL of $17 billion. The lending protocol has continued to grow with its latest move being the integration of Aave V3 on mobile-first blockchain Celo.
The launch on Celo now puts the total of blockchain that hosts the Aave V3 at seven, including Ethereum, Aptos, Polygon, Avalanche, and Arbitrum. However, despite the good news of the buyback, Aave is down 1% today, signalling a rough patch in the tokens price moves.
According to CoinMarketCap, the token is down 47% YTD and about 50% in the last 90 days. The poor performance is connected to the wider market move, which has affected largely all tokens. When compared to Bitcoin, AAVE is down 42% in the last 90 days and 22% in 30 days.
Nevertheless, AAVE is still in a far better position compared to last year. The token is up 37% compared to its price last year and many believe it positioned for a bull run when the positive sentiment returns to the market.