Aave’s tokenholders authorised a governance proposal to begin shopping for again the decentralized finance (DeFi) protocol’s governance token, AAVE, as a part of a broader tokenomics overhaul, Aave stated on April 9.
The proposal — which was authorised by greater than 99% of AAVE tokenholders — permits the protocol to buy $4 million in AAVE (AAVE) tokens, sufficient for one month of buybacks.
The transfer is a “first step” towards a broader plan to repurchase $1 million AAVE tokens weekly for six months. It is usually the newest occasion of DeFi protocols implementing buyback mechanisms in response to tokenholder calls for.
“The aim is to sustainably improve AAVE acquisition from the open market and distribute it to the Ecosystem Reserve,” the proposal stated.
The AAVE token’s value rallied greater than 13% on April 9, bringing the protocol’s market capitalization to greater than $2.1 billion, in keeping with data from CoinGecko.
The buyback proposal handed with overwhelming assist. Supply: Aave
Associated: Aave proposal to peg Ethena’s USDe to USDT sparks community pushback
Buybacks acquire reputation
In March, the Aave Chan Initiative (ACI), a governance advisory group, proposed a tokenomics revamp that would come with new income allocations for AAVE tokenholders, enhanced security options for customers, and the creation of an “Aave Finance Committee.”
Aave is Web3’s hottest DeFi protocol, with whole worth locked surpassing $17.5 billion as of April 9, according to DefiLlama.
It is usually amongst DeFi’s greatest price turbines, with an estimated annualized price revenue of $350 million, the info reveals.
Aave is DeFi’s hottest protocol by TVL. Supply: DeFILlama
DeFi protocols are beneath rising stress to supply tokenholders with a share of protocol revenues — partly as a result of US President Donald Trump has fostered a friendlier regulatory environment for DeFi protocols in the US.
Tasks together with Ethena, Ether.fi and Maple are piloting value-accrual mechanisms for his or her native tokens.
In January, Maple Finance’s group floated buying back native SYRUP tokens and distributing them as rewards to stakers.
In December, Ether.fi, a liquid restaking token issuer, tipped plans to direct 5% of protocol revenues towards shopping for again native ETHFI tokens.
Equally, Ethena, a yield-bearing stablecoin issuer, agreed to share a few of its roughly $200 million in protocol revenues with tokenholders in November.
Journal: DeFi will rise again after memecoins die down: Sasha Ivanov, X Hall of Flame
