Aave DAO Unveils $50M Annual Buyback Plan Ahead of V4

Published: 2025-10-23 10:59:45 |

Aave DAO has unveiled a $50 million annual Aave buyback plan funded by protocol revenue and DeFi yield. Under the proposal, the Aave Finance Committee and TokenLogic would execute weekly Aave buybacks of $250,000 to $1.75 million, adjusting for market volatility and liquidity. Now in the ARFC feedback phase, the plan follows a successful $4 million buyback in April and a $20 million opportunistic initiative, and is set for a Snapshot vote before final on-chain approval. This move aims to institutionalize token repurchases within DAO treasury management, shifting from ad-hoc interventions to a systematic capital strategy ahead of the Aave V4 upgrade slated for Q4 2025. V4 will introduce a modular hub-and-spoke design, dynamic risk configurations, and a Cross-Chain Liquidity Layer to pool collateral across multiple blockchains. Currently trading near $220 in a descending channel, AAVE’s RSI and MACD signal easing selling pressure, but continued downside may test $135–$150 support. Traders should monitor how the buyback affects token supply, price stability, and momentum leading into V4 adoption.

Bullish

Institutionalizing a $50M annual Aave buyback funded by protocol revenue signals sustained demand and supply reduction, offering immediate price support. Coupled with the upcoming V4 upgrade—featuring modular architecture and cross-chain liquidity—the plan strengthens tokenomics and market confidence. Short-term weekly purchases may floor AAVE’s price, while long-term adoption of V4 and systematic buybacks can drive sustained bullish momentum.