Stani Kulechov, founder of the DeFi lending protocol Aave, has proposed introducing a token burn mechanism as part of the Aavenomics 3.0 framework. This shift would replace the current strategy of holding repurchased tokens in the DAO Ecosystem Reserve with a permanent removal of tokens from circulation.
The protocol initiated its first structured buyback program in early 2025, with a budget of up to $1 million per week. By mid-2026, this program had accumulated over 205,000 AAVE tokens in reserves. In April 2026, the Aave Will Win governance framework was passed, directing all protocol and GHO stablecoin revenue to the treasury and token holders.
Since its inception, Aave has generated over $2.2 billion in total fees. Recent annualized revenue for the protocol is approximately $134 million. The previous buyback program, with its weekly budget, accounted for roughly $52 million in annual token demand.
Details regarding the mechanics of the potential burn, including the percentage of revenue involved or the status of existing reserves, remain undisclosed. Kulechov is expected to provide further information during an upcoming quarterly call.
