The AAVE token, native to the popular lending protocol Aave, will soon enter the token buyback phase. The launch of the initiative is scheduled for April 9, and the project will allocate 4 million dollars for this purpose in aEthUSDT.
The goal of the buybacks is to reduce the supply of tokens available on the market, which could potentially lead to an increase in their value. The repurchased tokens will be transferred to the ecosystem reserve, constituting a long-term strategy aimed at enhancing the investment attractiveness of AAVE.
This decision, approved by the Aave DAO, fits into a broader strategy of updating tokenomics aimed at creating a new revenue source for the protocol by activating a fee mechanism. Aave's CEO and founder Stani Kulechov wrote that "The new Aavenomics update. It's like a fee switch on steroids,"