Aavenomics, the proposal to modify Aave protocol tokenomics and introduce token buybacks, has achieved a quorum

Aavenomics, the proposal to modify Aave protocol tokenomics and introduce token buybacks, has achieved a quorum for the Aave DAO. Aave Chain Initiative (ACI) founder Marc Zeller announced this on X, noting that it marks a new era for the protocol.

Aave Chain Initiative (ACI) founder Marc Zeller has announced on X that the Aavenomics proposal, which includes modifying Aave protocol tokenomics and introducing token buybacks, has achieved a quorum for the Aave DAO. According to Zeller, this marks a new era for the protocol.

Aave DAO members voted overwhelmingly in favor of the proposal to start buying back AAVE tokens for $1 million per week on Wednesday. The proposal was approved by a majority of Aave DAO members.

According to reports, over 427,000 votes were cast in favor of the proposal, exceeding the required threshold of 320,000 votes, while only 2,000 votes were against it.

“The $AAVE aavenomics AIP now has quorum. Welcome to the new era for @aave. 1m$/week buybacks financed by protocol profits starting on Wednesday.”

The Aave DAO buyback is an experiment that will begin in the next six months, during which Aave will use a part of its profits to buy AAVE tokens. By the end of the year, Aave DAO would have bought back 2.5% of the supply based on AAVE’s current price and buyback.

However, Zeller pointed out that the six months are just the pilot phase of the buyback program, as the intention is to make the buyback last forever. The Aave DAO only voted for $1 million for six months to keep the rate low initially, and the program will likely be renewed after six months.

“Buybacks are forever, the rate is just the one the DAO has voted for the next 6 months to start slow & at a conservative rate.”

Aave, known for its high TVL and multi-chain presence, remains a leading DeFi protocol.

AAVE plunges amid crypto market downfall

Despite the positive news of a token buyback for AAVE, the token fell 18% in the last 24 hours, according to CoinMarketCap. This was enough to send it crashing to $115, although it has now recovered to $121.

This is contrary to what usually happens when news like this breaks. Generally, buyback is a positive indicator as it means that there will be constant buying pressure for the token, and the circulating supply will also reduce.

However, general market struggles, mostly due to the international trade wars between the US and other countries, have nuked the entire crypto market in the last 24 hours, with Bitcoin crashing to $74,000; Aave has not been spared.

The plunge in AAVE value continues what has been a rough year for the token, during which it lost 62.22% of its value. AAVE started 2025 trading around $308, but market uncertainties and the general struggles of the crypto market have caused the token to shed more than half of this value. In the last 30 days alone, it has fallen 34%.

Nevertheless, the Aave community remains bullish. Zeller noted that the liquidation resulting from today’s market crash resulted in around $0.5 million in profits for the Aave. The Aave DAO also holds $100 million in cash, with 70% of it in stablecoins.