# Aave Considers AAVE Burn Mechanism as Token Tests $165.98

By Enna Lee

Canonical URL: https://www.tokenpost.com/news/investing/25956
Published: 2026-09-30T20:05:20.000Z
Updated: 2026-09-30T20:05:20.000Z
Section: Investing

> Stani Kulechov said the protocol is considering a burn for Aavenomics 3.0, while no proposal, vote, amount or launch date has been set.

Aave founder Stani Kulechov said the protocol is considering an AAVE burn mechanism for Aavenomics 3.0 as the token approached a technical resistance level near $165.98.

Kulechov wrote Sept. 28, “We’re considering also burn for Aavenomics 3.0.” No formal governance proposal, vote, burn amount or launch date has been established.

A burn would permanently remove AAVE from circulation. That would differ from Aave’s existing buyback program, which has a $50 million annual budget and makes weekly purchases ranging from $250,000 to $1.75 million. The purchased tokens are sent to the Aave DAO Ecosystem Reserve instead of being permanently removed.

The available details do not establish whether a future burn would use newly purchased tokens, assets already held in the reserve or both. Aave’s governance tokenomics plans therefore remain at the consideration stage.

Aave’s earlier buyback strategy has used protocol revenue to acquire AAVE on the open market, with reserve holdings available for staking rewards, grants and service-provider payments.

Separately, two wallets exchanged 50.95 Wrapped Bitcoin (WBTC), valued at about $4.26 million, for 25,502 AAVE on Sept. 30. The wallet owners and their investment intentions were not identified.

AAVE was reported at $161.93 in a technical setup that identified resistance near $165.98. The setup marked $141.48 as support and placed $180 as a possible target if the resistance level becomes support.

Those levels describe a conditional chart structure rather than a confirmed Aave announcement or market event. The technical indicators cited in the setup were +DI at 37.16, -DI at 12.65 and ADX at 34.27.

No next governance step or timetable for the proposed burn has been announced.