Stani Kulechov, the founder of Aave, has announced Aavenomics 3.0 — an automatic on-chain mechanism for buying back AAVE tokens using protocol revenues and the GHO stablecoin.
https://twitter.com/StaniKulechov/status/2070241675642122498
Aavenomics 3.0 aims to integrate buybacks into the protocol's economy while removing discretionary control from the committee. Kulechov described the model as a "default" mechanism that will only stop following a separate governance vote.
Currently, AAVE buybacks are conducted under Aavenomics Part One. The Aave Finance Committee has been mandated to purchase tokens on the secondary market for $1 million per week for the first six months. Governance can redirect, pause, or alter this program without changing the protocol's logic.
The backdrop for this update is the Aave Will Win framework adopted in April 2026. The proposal published on the governance platform states that 100% of the revenue from Aave-branded products should go to the Aave DAO treasury.
According to Kulechov, this amount currently stands at $134 million per year.
The full specification of Aavenomics 3.0 and the timeline for bringing the initiative to a vote have not been disclosed at the time of publication. Kulechov promised to share details during the next Aave quarterly call, which will take place "in the next couple of weeks."
Following the upgrade announcement, AAVE prices surged from around $79 to approximately $98. After a correction, the token is trading around $89, maintaining about a 20% increase for the week (CoinMarketCap).
As a reminder, in mid-June, Grayscale analysts deemed AAVE "undervalued" and set a price target of $179 for the upcoming year.