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

Aave, one of the leading decentralized finance ( DeFi ) platforms in the cryptocurrency world, is launching a token buyback program as a result of 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 has been authorized to begin purchasing AAVE tokens worth 4 million dollars.

This move is planned as the first phase of a large-scale revision of the protocol's token economy. Purchases will be valid for the first month; then it will be expanded to continue for a total of 6 months with a weekly purchase of 1 million dollars worth of AAVE. Aave's goal is to regularly buy AAVE tokens from the market, transfer them to the Ecosystem Reserve, and thereby create sustainable price support.

Recently, token buybacks have become popular among DeFi protocols, used to meet investor 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 a total locked value of approximately 17.5 billion dollars (TVL). With an annual fee income of about 350 million dollars, it is also one of the largest revenue generators in the industry.

The price of the Aave token increased by more than 13% to reach $136.64 on April 9, following the announcement. With this increase, the market value of the protocol also rose above $2.1 billion.

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