Aave confirmed Saturday that Aavenomics 3.0 is now active, with automated AAVE token buybacks running and DAO operational spending reduced, completing a governance roadmap the protocol has built toward since mid-2024.
Aave’s governance framework confirms that Aavenomics 3.0 is now active, with automated AAVE token buybacks running and DAO operational spending reduced, completing a governance roadmap the protocol has built toward since mid-2024.
The activation follows passage of the Aavenomics Part One ARFC and the Aave Will Win framework, which together established the immutable buyback and revenue-routing structure now live. Protocol revenue currently runs at approximately $402 million annualized, based on DefiLlama’s trailing seven-day window, with all-time fees exceeding $2.21 billion. Buybacks under the prior discretionary program had already acquired more than 205,000 AAVE tokens, roughly 1.28% of total supply, since launching in April 2025, per Aave’s governance forum.
Automated Buyback Mechanics
The original buyback mandate, passed as the Aavenomics Part One ARFC in early 2025, authorized the Aave Finance Committee to execute $1 million per week in AAVE purchases from secondary markets for the first six months of the mandate. That program was committee-directed: the AFC could resize, pause, or redirect it without a protocol-level change.
Aavenomics 3.0 replaces that structure with an immutable, non-discretionary mechanism that routes all Aave Protocol and GHO revenue to AAVE holders without requiring committee sign-off on each cycle.
Aave founder Stani Kulechov outlined the design Thursday, describing “immutable and automated buybacks of AAVE” as the core update. The Defiant reported Thursday on Kulechov’s initial public remarks as he disputed reports of discounted stake talks with Kraken’s parent company.
DAO Spending Reduction
The spending cut runs in parallel. In March 2026, governance passed an ARFC reducing the annual buyback budget from approximately $50 million to $30 million, citing a 25% decline in borrow fee revenue from its peak and an optimistic 2026 operational budget of $190 million against 2025’s $142 million in annual revenue. The adjustment also shifted primary buyback funding from stablecoins to ETH-correlated assets, using the DAO’s approximately $40 million in ETH holdings to reduce stablecoin drawdown.
The reduction preserves around $20 million annually in stablecoin reserves for service providers and growth programs. At the adjusted pace, the DAO acquires an estimated 292 AAVE per day.
The broader revenue framework was established by the Aave Will Win (AWW) proposal, proposed in late March 2026 and launched in April 2026. Under AWW, 100% of revenue from Aave Protocol, GHO, and Aave-branded products flows to the DAO treasury. Aave Labs operates solely as a DAO service provider with no direct claim on protocol revenue.
AAVE Price
AAVE was trading around $97.83 Saturday morning, up roughly 10% over the prior 24 hours and up about 32% on the week, per CoinGecko. Market cap stood at approximately $1.49 billion, with Aave’s total value locked at $12.45 billion, per DefiLlama.
GHO, Aave’s native stablecoin, circulates at roughly $598 million, per DefiLlama, contributing incremental fee income alongside lending revenues.
