The Aave Decentralized Autonomous Organization (DAO) has announced a new initiative to repurchase AAVE tokens worth $1 million weekly for six months.
AAVE Token Buyback Program
The program will begin on April 9 and aims to strengthen the protocol's financial structure and improve incentives for long-term stakeholders. As part of this initiative, Aave DAO plans to utilize $4 million in aEthUSDT from the DAO treasury to support weekly purchases of AAVE tokens worth $1 million.
Support for the Aave DAO Initiative
The proposal received strong support, with 439,000 votes in favor, exceeding the required minimum of 320,000 votes. The initiative has also led to the creation of the Aave Finance Committee (AFC), which will oversee fund management and ensure responsible execution of the buyback strategy. An important task for the committee will be to ensure transparency and adherence to best practices in financial management.
Institutional Interest in DeFi
According to a recent report, institutional investors are ramping up their crypto ambitions, with 83% planning to boost their digital asset holdings by 2025. With less than 25% of institutions currently using DeFi, experts predict that this figure could triple to 75% within the next two years.
The AAVE token buyback program is a significant step towards strengthening Aave's market position and creating long-lasting value for the community. At the same time, rising institutional interest indicates further development in the DeFi sector.
