Stani Kulechov introduced Aavenomics 3.0: automatic buyback of AAVE becomes an integral part of the protocol
Aave founder Stani Kulechov announced the launch of Aavenomics 3.0 — a fully automated on-chain mechanism for the reverse buyback of AAVE tokens. Funds for these operations will come directly from protocol revenues and the GHO stablecoin, fundamentally changing the ecosystem's liquidity management model.
New Protocol Economy: Buyback by Default
The key difference of Aavenomics 3.0 from the current scheme is the elimination of discretionary management by the committee. Kulechov described the mechanism as a "buyback by default," which will operate continuously until the community votes to suspend it. This makes token repurchases a built-in element of the Aave economy, rather than a temporary measure.
Currently, the Aavenomics Part One program is in effect, under which the Aave Finance Committee purchases tokens on the secondary market for $1 million weekly. However, governance can change or cancel this program at any time without altering the protocol's logic — this is precisely the vulnerability the new upgrade aims to fix.
Background for the Update: The Aave Will Win Framework
In April 2026, the community adopted the strategic Aave Will Win framework, under which 100% of revenue from all products under the Aave brand must be directed to the Aave DAO treasury. According to Kulechov, the protocol's current annual revenue is $134 million. Thus, Aavenomics 3.0 fits organically into this model, automating fund distribution.
The full specification of the update and exact voting timelines have not yet been disclosed. Kulechov promised to present details during the next quarterly Aave call, which will take place in the next couple of weeks.
Market Reacted with Growth
Following the announcement, AAVE quotes surged from ~$79 to ~$98. After a correction, the asset is trading around $89, representing approximately a 20% weekly increase. Notably, in mid-June, Grayscale analysts recognized AAVE as "undervalued," setting a base target of $179 for the next year.
My comment: Aavenomics 3.0 is a logical step toward decentralizing governance and increasing tokenomics predictability. An automatic buyback funded by protocol fees creates sustainable demand for AAVE and reduces dependence on committee decisions. However, the key point will remain the implementation details: if the mechanism is too rigid, it could limit the DAO's flexibility in crisis situations. We'll be watching the quarterly call.