Aave founder proposes automated token buyback to make earnings payouts predictable

Aave founder Stani Kulechov took to X on Thursday to preview Aavenomics 3.0 – a tokenomics redesign that would scrap the protocol's current discretionary buyback program in favor of an automated, non-discretionary on-chain mechanism.

The new system would be funded by all protocol revenue plus revenue generated by GHO, Aave's native stablecoin. That marks a shift from the current setup, where buybacks happen at the team's discretion and often leave traders guessing about timing and scale.

Kulechov's post did not specify a timeline for implementation or whether the proposal would go through Aave's standard governance process. But the direction is clear: move toward a predictable, code-enforced buyback schedule that treats AAVE holders more like direct beneficiaries of protocol earnings.

Under Aavenomics 3.0, the automated buyback would pull from a wider revenue pool than the current program. Tapping GHO revenue in addition to general protocol fees means the buyback engine could run even during periods when lending and borrowing activity slows – provided GHO maintains its peg and demand.

The proposal fits Aave's broader push to make its tokenomics more sustainable and less reliant on team decisions. Other DeFi protocols have already moved to automated buy-and-burn or fee-switching models, and Aave is now following that trend with its own twist.

For traders, the main question is what happens to governance. Aave's discretionary buyback was always subject to community votes. An automated system removes that flexibility but adds certainty – a trade-off that could sway how AAVE is priced relative to fundamentals.

No formal vote has been announced. Kulechov's X thread is the only source so far. Market participants will watch for a full governance post and for the Aave DAO to indicator whether it accepts the shift. Until then, the proposal remains a preview, not policy.