Major DeFi Altcoin Takes Action for Falling Price: Token Rollback Will Be Made! - Coin Bulletin

The popular DeFi protocol Aave’s (AAVE) community has decided to initiate a $4 million buyback program to support the token price.

One of the leading decentralized finance (DeFi) platforms in the cryptocurrency world, Aave (AAVE), is launching a token buyback program following a critical decision made by community voting. In a statement made on April 9, it was confirmed that, with the approval of more than 99% of token holders, the protocol will begin purchasing AAVE tokens worth 4 million dollars.

This move is planned as the first phase of a token economy revision for the protocol on a large scale. Purchases will initially be valid for one month; thereafter, it will be expanded to continue for a total of 6 months with weekly purchases of 1 million dollars in AAVE. Aave’s goal is to regularly purchase AAVE tokens from the market and transfer them to the Ecosystem Reserve, thereby creating sustainable price support.

Recently, token buybacks have become popular among DeFi protocols, used to meet investors’ demands, increase token value, and send positive signals to the market. In the US, this practice is becoming even more widespread with the DeFi friendly regulations of the Donald Trump administration.

Aave stands out as the largest DeFi protocol in the Web3 world, with approximately 17.5 billion dollars total locked assets (TVL). With an annual fee revenue of approximately 350 million dollars, it is also one of the biggest revenue producers in the industry.

The price of Aave token rose by more than 13% on April 9, reaching $136.64 following the announcement. With this increase, the protocol’s market value also exceeded $2.1 billion.