The largest DeFi lending protocol will continue to use revenue to repurchase AAVE tokens.
The Aave DAO has approved a proposal to make its AAVE buyback program permanent, allocating $50 million per year from protocol revenue to repurchase tokens.
The proposal, authored by the Aave Chan Initiative (ACI) and revealed on Oct. 22, 2025, was passed with 100% “Yae” votes. The plan is part of Aave’s long-term “Aavenomics” to increase the value of the AAVE token and strengthen the project’s treasury. It also continues Aave’s previous buyback program indefinitely.
Aave is currently the largest decentralized finance (DeFi) protocol with a total value locked (TVL) of $36.4 billion, according to DeFiLlama. It has recorded $12.7 million in revenue over the past 30 days.
Meanwhile, AAVE is currently trading at $200.54, down 10.9% on the day amid a broader market downturn, per CoinGecko data.
Weekly Buybacks
Under the new plans, the Aave Finance Committee (AFC) and TokenLogic can buy between $250,000 and $1.75 million worth of AAVE each week. The amount will depend on market conditions and how much revenue the protocol is generating.
“The Aave Protocol has demonstrated strong revenue generation and treasury growth,” the proposal reads. “With the expiry of the existing buyback initiative, and the strong success of the program, we think it is an opportune time to enshrine a buyback program to further enhance Aavenomics.”
The move makes Aave one of the few major DeFi projects that will run a permanent buyback program funded by revenue. The AFC will also be allowed to use Aave’s wETH and BTC reserves to support new growth initiatives.
A recent report by WisdomTree Prime noted that, in addition to Aave, protocols like Hyperliquid, Jito, and Lido are also experimenting with on-chain token buybacks or have proposed doing so.
Broader Shift
Aave’s move also comes amid a broader shift in crypto toward tokenholder payouts. According to a recent report from investment firm Keyrock, token buybacks and direct revenue distributions have grown more than fivefold since 2024, with projects returning an average of 64% of revenue to holders.
That marks a major change from earlier years, when protocols typically reinvested earnings into product development, ecosystem grants, and marketing.
The trend also suggests crypto projects are increasingly operating like traditional companies that prioritize shareholder returns.
Source: https://thedefiant.io/news/defi/aave-dao-makes-usd50-million-annual-token-buybacks-permanent
