Aave DAO Approves $1 Million Weekly Token Buyback

The Aave Decentralized Autonomous Organization (DAO) has approved a six-month pilot program. Beginning on April 9, this program will involve buying back AAVE tokens worth $1 million weekly. According to the announcement, this initiative aims to strengthen the protocol’s financial structure and improve incentives for long-term stakeholders. Aave DAO Aims to Create Lasting Value for its Community It is worth noting that the proposal received strong support, with 439,000 votes in favor, exceeding the required 320,000 votes. Only 2,020 votes were against it. Meanwhile, this initiative has helped to create the Aave Finance Committee (AFC). This new group will oversee the protocol’s money management and ensure the buyback strategy is carried out responsibly. During this trial period, the committee will also act as a financial steward, working to ensure best practices for managing funds and ensuring transparency. In its first phase, the AFC will use $4 million in aEthUSDT from the DAO treasury. This money will support about one month of buying back AAVE tokens, with weekly purchases of AAVE tokens worth $1 million. Intriguingly, Aave is working to create lasting value for its community and protocol. By reducing the number of AAVE tokens in circulation, the DAO aims to improve token use, boost investor confidence, and align incentives across the ecosystem. Meanwhile, the founder of the Aaave Chain Initiative, Marc Zeller, hinted that the six-month timeline could be extended. Furthermore, the new development came when the AAVE’s price experienced a sharp decline. As of the time of writing, the AAVE price has dropped 8.7% and is trading at $131.55. DeFi Sees Rising Institutional Interest Institutional investors are increasingly doubling their crypto ambitions , with 83% planning to boost their digital asset holdings in 2025. According to a report by Coinbase and consultancy firm EY-Parthenon, nearly three-quarters of the surveyed firms already hold cryptocurrencies beyond the usual Bitcoin and Ethereum staples. In Parallel, decentralized finance platforms are also gaining traction. Although only 24% of institutions currently use DeFi, the reports predict this figure will triple to nearly 75% within the next two years. Institutions cited staking, derivatives, and lending as their primary use cases, followed by cross-border settlements, yield farming, and altcoin access. The post Aave DAO Approves $1 Million Weekly Token Buyback appeared first on TheCoinrise.com .

Source: The Coin Rise