The AAVE token buyback program has been approved by the Aave DAO, marking a significant event for the community. The initiative entails a $1 million buyback weekly.
Approval of Aavenomics Program
Aave Chain Initiative founder Marc Zeller announced that the Aavenomics proposal to modify the Aave protocol's tokenomics and introduce buybacks has achieved a quorum among Aave DAO members. Over 427,000 votes were cast in favor of the proposal, significantly exceeding the required 320,000 votes.
Experimental Nature of the Program
The buyback program is experimental, and for the first six months, Aave will allocate part of its profits to buy AAVE tokens. Zeller noted that future plans include continuing the program, but the initial buyback amount will be $1 million weekly. He also stated, 'Buybacks are forever.'
AAVE Price Decline and Its Impact
Despite the positive news of the buyback, AAVE's price fell by 18% over the last 24 hours, dropping to $115 before slightly recovering. This decline occurred amid overall market challenges related to international trade conflicts. The token has lost over 62% of its value this year.
The approval of the AAVE token buyback program represents a crucial step for the protocol, although current market conditions negatively impact the token's price. The community remains optimistic about Aave's future.
