Aave initiates a token repurchase mechanism, with the first month's repurchase budget reaching 4 million US dollars

News on April 9th, according to the Aave official governance page, the proposal by Aave DAO to authorize $4 million equivalent of aEthUSDT for the initiation of the first phase of the Aavenomics buyback and distribution plan has been approved by the Finance Committee (AFC).

The plan aims to repurchase AAVE from public markets and distribute it into ecosystem reserves, thereby enhancing governance incentives and protocol health. This initial authorization will support approximately one month's worth of buyback operations while reserving buffer time for future deployment of new Aave Swapper contracts. The full plan is expected to continue at a pace of up to $1 million per week over six months.

This proposal enables AFC to begin executing the first phase of its buyback program, approving $4 million in aEthUSDT for about one month's worth of AAVE repurchases. By setting an authorization limit rather than direct transfers, this proposal ensures fund security while allowing AFC to efficiently execute repurchases within governance-approved limits, helping steadily advance implementation of Aavenomics.