Aave Introduces Aavenomics, Commits to Purchase $1M of AAVE Tokens Weekly
Aave DAO endorses Aavenomics and commits to purchasing $1M of AAVE weekly starting April 9. These resources will be derived from the protocol’s earnings and are intended to bolster their ecosystem reserve. Will this Decentralized finance titan solidify its dominance in the sector shortly after revealing Lens Chain?
Aave, a leading DeFi platform primarily operating on ETH, is embarking on a transformative journey following the formal launch of Aavenomics.
Following quorum achievement on April 7, Aave DAO stakeholders ratified Aavenomics, approving the acquisition of $1 million worth of AAVE each week from secondary markets.
The proposal, which the Aave DAO voted in favor of by a clear majority, initiates an adventurous strategy to align the network with its long-term goals. The aim is to create a self-sustaining Aave ecosystem funded solely by its profits. This could position the crypto token among the top cryptocurrencies to consider in 2025.
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Aavenomics: Implications for Aave
Unsurprisingly, Aavenomics received substantial backing from AAVE holders.
Based on on-chain voting, the plan to acquire $1 million of AAVE from platforms such as Binance and Coinbase weekly secured 550,000 votes, significantly exceeding the required 320,000 votes.
(Source)
Contrarily, opposition to the proposal was minimal, with only 2,024 dissenting votes.
With the proposal approved, Aavenomics will commence on Wednesday, April 9—a significant moment that Marc Zeller, founder of the Aave Chain Initiative (ACI), asserts will mark the “beginning of a new chapter” for the Decentralized finance ecosystem.
The $AAVE aavenomics AIP has achieved Quorum.
Welcome to a new chapter for @aave.
1m$/week buybacks financed by platform profits from Wednesday onward.
Just utilize Aave. pic.twitter.com/vRgwJbZIiX
— Marc “Billy” Zeller
This initiative is set to last six months, during which the DAO will assess the program and, if viable, consider extending or augmenting the buyback plan by increasing the capital.
According to Zeller, the AAVE buybacks aim for permanence. The trial phase allows the team to evaluate its effects and make necessary changes.
By the conclusion of the six-month initiative, approximately 2.5% of the total AAVE circulating supply will have been withdrawn from circulation.
Today’s liquidations resulted in ~$0.5M in SVR profits, with no adverse debt.
The Aave DAO retains $100M in cash (70% stablecoins).
At the current $AAVE price, DAO buybacks will constitute 2.5% of the total supply by the year’s end.
The Aave DAO operates effectively.
Just Use Aave. pic.twitter.com/84Gpj9zKVl
— Marc “Billy” Zeller
Ultimately, the objective of the team is to enhance AAVE acquisition sustainably and allocate it to the protocol’s ecosystem reserve.
Will AAVE/USD Prices Surge?
It remains uncertain if AAVE prices will react positively to this development. An increase in prices could elevate trading market sentiment, potentially fostering interest in other Decentralized finance protocols, including some of the most promising presales of 2025.
This timing is favorable for AAVE stakeholders. After hitting a high in December, AAVE prices have significantly decreased, dropping more than 65%. Interestingly, sellers wiped out all gains from Q4 2024, causing prices to sink below $130 on April 7.
(AAVEUSDT)
Currently, AAVE has rebounded, with bulls entering the market yesterday, pushing prices upwards and counteracting the aggressive bears seen on April 6.
AAVE could continue to rise if this positive momentum persists today. However, the true bull crypto market will commence once the token surpasses $160 and $200.
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Focus on Decentralized Social Media via Lens Chain
The Aave DAO’s strategy to reinvest some of the protocol’s profits into coin buybacks follows yet another significant achievement.
Recently, the team unveiled the Lens Chain mainnet, a platform built on ETH focused on facilitating decentralized social media.
Lens has launched on live protocol. SocialFi begins now. pic.twitter.com/nRNJ3E8NQ4
— Lens Chain (@LC) April 4, 2025
This Layer-2 solution, developed by Avara—the entity behind Aave—will provide adaptable and privacy-centric social media features.
To maintain a competitive edge, the Lens Chain will integrate its decentralized data storage technology. Additionally, it will employ GHO, the algorithmic stablecoin from Aave, for gas fee payments.
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Aave Buyback Initiative: Aavenomics to Acquire $1M AAVE Weekly
- Aave coin buyback 2025: Aave DAO approves $1M weekly AAVE purchases starting April 9
- Will Aavenomics elevate AAVE market demand?
- AAVEUSDT discovers price floor after a 65% decline over three months
- Avara introduces Lens Chain for SocialFi
The post Aave Embraces Aavenomics, Consents to Purchase $1M of AAVE Tokens Weekly first appeared on 99Bitcoins.
