Aave launches token buyback mechanism, with a buyback budget of 4 million dollars in the first month

ChainCatcher news, the Aave official governance page shows that the proposal by Aave DAO to authorize the Financial Committee (AFC) to use the equivalent of 4 million USD in aEthUSDT for the launch of the first phase of the Aavenomics buyback and distribution plan has been approved.

The plan aims to buy back AAVE from the open market and distribute it to the ecosystem reserves, thereby enhancing governance incentives and the health of the protocol. This initial authorization will support approximately one month of buyback operations while reserving buffer time for the future deployment of new Aave Swapper contracts. The complete plan is expected to continue at a pace of up to 1 million USD per week over the next six months. This proposal enables the AFC to begin executing the first phase of the buyback plan, approving 4 million USD in aEthUSDT for approximately one month of AAVE buybacks. By setting an authorization limit rather than a direct transfer, the proposal ensures the safety of funds while allowing the AFC to efficiently execute the buyback within the governance approval scope, contributing to the steady advancement of Aavenomics implementation.