Aave's Stani Kulechov has launched Aavenomics 3.0, an automatic buyback mechanism for AAVE tokens using protocol revenues, enhancing the project's economic framework.
Stani Kulechov, the founder of the Aave platform, has introduced Aavenomics 3.0, a new on-chain mechanism to facilitate automatic buybacks of AAVE tokens using revenue generated by the protocol and the GHO stablecoin.
This initiative is designed to embed buybacks into Aave's economic structure while removing the discretionary powers previously held by the committee. Kulechov labeled the buyback model as a standard procedure that will remain in effect unless revoked by a governance vote.
Presently, AAVE buybacks are part of Aavenomics Part One, where the Aave Finance Committee has been tasked with acquiring tokens valued at $1 million weekly for six months. This program can be adjusted or paused through governance decisions without altering the protocol's fundamental logic.
This announcement aligns with the Aave Will Win framework initiated in April 2026, which mandates that all revenue from Aave-branded products contributes to the Aave DAO treasury. Kulechov indicated that this revenue currently amounts to $134 million annually.
While the details of Aavenomics 3.0 and the voting timeline are yet to be revealed, Kulechov has committed to providing more information during the upcoming quarterly Aave call planned for the next few weeks.
Following the announcement, AAVE token prices jumped from roughly $79 to around $98, settling at about $89 after a market correction, which still reflects a 20% rise over the week according to CoinMarketCap. Notably, Grayscale analysts previously labeled AAVE as "undervalued," projecting a price target of $179 for the next year.
