Aavenomics 3.0 Adds Staking to Aave (AAVE) Buyback and Burn Plan

Aavenomics 3.0 is expected to pair Aave (AAVE) buybacks with staking and token burns, expanding the tokenomics plan beyond a recurring repurchase program.

Aave’s decentralized autonomous organization (DAO) has a $50 million annual buyback budget, with weekly purchases ranging from $250,000 to $1.75 million. Earlier descriptions centered Aavenomics 3.0 on an automated, non-discretionary buyback plan.

A burn would permanently remove tokens from circulation. Aave founder Stani Kulechov raised the possibility of adding one on Sept. 28, but that discussion set no burn amount, formal governance proposal, vote or launch date. A March 2025 governance proposal designated 320,000 AAVE held in the LEND migration contract for transfer to Aave’s ecosystem reserve, where the tokens could later be considered for growth, safety or burn proposals.

The latest outline does not specify how staking would work, how a burn would be designed or when either mechanism could begin. An earlier discussion of a possible AAVE burn preceded the addition of staking to the plan.