Aave updates token economic model, initially plans to repurchase $1 million AAVE every week

PANews reported on March 4 that according to Aave governance proposal, the Aave community proposed the latest token economics update [Aavenomics Implementation Plan: Part 1], aiming to optimize the AAVE token economy, including launching AAVE repurchase, redistribution of agreement excess revenue, terminating LEND token migration, and upgrading secondary liquidity management.

Aave DAO currently has cash reserves of US$115 million and expects revenue growth in 2025. The proposal plans to use Umbrella security mechanisms to protect liquidity while promoting Anti-GHO tokens to repay GHO debts or exchange them for StkGHO. In addition, Aave will launch the "repurchase and distribution" plan, repurchase $1 million in AAVE every week in the initial stage and gradually expand its scale.

If passed, the proposal will enter the Snapshot voting phase and will be implemented by Aave Finance Committee.