Aave founder Stani Kulechov signals protocol is evaluating a token burn mechanism as part of 'Aavenomics 3' tokenomics upgrade, complementing existing buybacks.
Regulation & Gov ·
Aave founder Stani Kulechov is weighing a token burn mechanism as part of Aavenomics 3, a forthcoming tokenomics overhaul for the protocol. The burn would operate alongside existing AAVE buyback programs, which are funded from protocol-generated revenue. Chaincatcher reported that these complementary mechanisms are under evaluation.
A combined burn-and-buyback approach would reduce circulating AAVE supply over time. The structure depends on sustained protocol revenue to fuel the buyback component; any material decline in earnings could constrain the buyback pace and alter the deflationary equation.
The specific timeline, implementation details, and governance vote required to activate Aavenomics 3 remain unspecified in available materials. The protocol has not yet disclosed whether community approval is required or when a vote might occur.