Aave founder Stani Kulechov proposes Aavenomics 3.0 integrating token buybacks, staking, and burning, with specifics to be determined via DAO vote.
Regulation & Gov ·
Aave founder Stani Kulechov has proposed Aavenomics 3.0, a framework integrating token buybacks, staking, and burning of AAVE tokens. The specific quantities to be burned and the timing for the relaunch will be determined through DAO voting.
AAVE buyback operations have been paused since April 19, following an rsETH vulnerability incident. During that halt, the DAO committed 25,000 ETH to compensate DeFi United for losses and arranged a credit facility of up to 30,000 ETH from Mantle. Prior to the suspension, a forum proposal had called for reducing the annual buyback budget from approximately 50 million dollars to 30 million dollars.
The structure and economics of Aavenomics 3.0 remain to be finalized through governance. No details have been disclosed regarding the scope of buybacks, staking mechanisms, or burn targets under the new framework.