Aave Launches Weekly Token Buyback Program of $1 Million

Aave has initiated a token buyback program, committing to repurchase $1 million worth of AAVE tokens weekly for six months, totaling over $50 million annually. These tokens will be redistributed to stakers as rewards.

Aave Weekly Token Buybacks Overview

Weekly buybacks begin immediately, with $1 million allocated each week.
Repurchased tokens aim to reward AAVE stakers directly from protocol revenue.
This initiative is part of a broader fee switch mechanism to enhance token buyback capabilities.
Long-term plans include increasing the scale of buybacks as protocol revenue rises.
Expected revenue growth sources include a partnership with Chainlink and the launch of GHO stablecoin.
New offerings like Horizon will focus on Real-World Assets (RWAs) to diversify revenue streams.

As of now, AAVE is priced at $139.18, reflecting a 2% increase in 24 hours. The buyback program is anticipated to create steady demand, potentially supporting the token's price by reducing market supply. Increased rewards for stakers may further encourage holding rather than selling.

Aave previously reported $210 million in liquidations without bad debt, showcasing its effective handling of market fluctuations.