{"id":21398,"date":"2025-04-09T21:32:00","date_gmt":"2025-04-09T21:32:00","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=21398"},"modified":"2025-04-09T21:32:00","modified_gmt":"2025-04-09T21:32:00","slug":"aave-soars-13-as-buyback-proposal-passes-among-tokenholders","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=21398","title":{"rendered":"AAVE soars 13% as buyback proposal passes among tokenholders"},"content":{"rendered":"
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\"AAVE<\/p>\n

Aave\u2019s tokenholders approved a governance proposal to start buying back the decentralized finance (DeFi) protocol\u2019s governance token, AAVE, as part of a broader tokenomics overhaul, Aave said on April 9.\u00a0<\/p>\n

The proposal<\/a> \u2014 which was approved by more than 99% of AAVE tokenholders \u2014 permits the protocol to purchase $4 million in AAVE (AAVE<\/a>) tokens, enough for one month of buybacks.\u00a0<\/p>\n

The move is a \u201cfirst step\u201d toward a broader plan to repurchase $1 million AAVE tokens weekly for six months.\u00a0It is also the latest instance of DeFi protocols implementing buyback mechanisms in response to tokenholder demands.<\/p>\n

\u201cThe goal is to sustainably increase AAVE acquisition from the open market and distribute it to the Ecosystem Reserve,\u201d the proposal said.\u00a0<\/p>\n

The AAVE token\u2019s price rallied more than 13% on April 9, bringing the protocol\u2019s market capitalization to more than $2.1 billion, according to data<\/a> from CoinGecko.<\/p>\n

\"AAVE
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The buyback proposal passed with overwhelming support. Source: <\/em>Aave<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n

Related:\u00a0<\/strong>Aave proposal to peg Ethena\u2019s USDe to USDT sparks community pushback<\/strong><\/em><\/a><\/p>\n

Buybacks gain popularity<\/h2>\n

In March, the Aave Chan Initiative (ACI), a governance advisory group, proposed a tokenomics revamp<\/a> that would include new revenue allocations for AAVE tokenholders, enhanced safety features for users, and the creation of an \u201cAave Finance Committee.\u201d<\/p>\n

Aave is Web3\u2019s most popular DeFi protocol, with total value locked surpassing $17.5 billion as of April 9, according<\/a> to DefiLlama.\u00a0<\/p>\n

It is also among DeFi\u2019s biggest fee generators, with an estimated annualized fee income of $350 million, the data shows.\u00a0<\/p>\n

\"AAVE
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Aave is DeFi\u2019s most popular protocol by TVL. Source: <\/em>DeFILlama<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n

DeFi protocols are under increasing pressure to provide tokenholders with a share of protocol revenues \u2014 partly because US President Donald Trump has fostered a friendlier regulatory environment for DeFi protocols<\/a> in the United States.<\/p>\n

Projects including Ethena, Ether.fi and Maple are piloting value-accrual mechanisms for their native tokens.<\/p>\n

In January, Maple Finance\u2019s community floated buying back native SYRUP tokens<\/a> and distributing them as rewards to stakers.<\/p>\n

In December, Ether.fi, a liquid restaking token issuer, tipped plans to direct 5% of protocol revenues toward buying back native ETHFI tokens.\u00a0<\/p>\n

Similarly, Ethena, a yield-bearing stablecoin issuer, agreed to share <\/a>some of its approximately $200 million in protocol revenues with tokenholders in November.<\/p>\n

Magazine:\u00a0<\/strong><\/em>DeFi will rise again after memecoins die down: Sasha Ivanov, X Hall of Flame<\/strong><\/em><\/a><\/p>\n