Aave DAO has given the green light to Aavenomics, initiating the weekly purchase of $1 million in AAVE tokens starting April 9. This initiative is expected to enhance the protocol’s ecosystem reserve, especially after the recent Lens Chain announcement.

Aave, a significant player in the DeFi space, is taking this step following a successful vote on April 7, where the proposal received overwhelming support.

The Aave DAO’s approval means that the protocol will buyback AAVE tokens weekly from secondary markets. This is intended to align long-term goals and create a self-sustaining ecosystem.

Aave DAO approves Aavenomics and the purchase of $1M of AAVE every week from April 9. Will this DeFi giant extend the lead in DeFi days after announcing Lens Chain?

Aavenomics Impact

The initiative will commence on April 9, and according to Marc Zeller, it marks the beginning of a ’new era’ for the DeFi protocol.

Will AAVE prices detect a rally? Signals indicate a potential resurgence in demand, particularly as AAVE prices have rebounded after experiencing a significant decline of over 65% earlier this year.

Lens Chain Launch

The decision to reinvest profits into these token buybacks aligns with Aave’s recent launch of the Lens Chain mainnet, which focuses on decentralized social media solutions. This layered platform aims to use its algorithmic stablecoin, GHO, for transaction fees while incorporating decentralized data storage solutions.