Skip to content
- Aave founder clarifies revenue structure, unveils upcoming automated AAVE buyback mechanism plans.
- Protocol revenue and product income remain dedicated entirely to AAVE token holders.
- Aavenomics 3.0 targets broader finance while strengthening long-term ecosystem value through buybacks.
The founder of Aave Stani Kulechov has explained how the funds generated by the Aave ecosystem are distributed and shared, and plans to introduce a new token buyback mechanism. Under the governance model the Aave Will Win adopted, all protocol and product revenue is ultimately for the benefit of AAVE token holders.
In a X post, Kulechov touched on various aspects of Aave’s financial model in the wake of recent market chatter. He added that the reports showing the AAVE tokens could be sold by 70% off the mark were not entirely correct as it was an ongoing process of a token allocation with Aave Labs.
Furthermore, Kulechov pointed out that Aave Labs is not generating any revenue from the protocol and its products. Rather, the company works as a development partner for the Aave DAO, developing and advancing the decentralized finance environment.
Also Read: Ripple and SBI Launch RLUSD Stablecoin Across Japan Following Regulatory Approval
Revenue Flows Directly to the AAVE Ecosystem
Kulechov said that the Aave Protocol and GHO stablecoin should be all about the AAVE token holders. The same model also applies to the income earned from the Aave App, Aave Pro, and Aave Swaps, he noted. Moreover, Kulechov announced that the total revenue of Aave is around $134 million per year. This income is distributed to the Aave DAO based on the governance set up in the Aave Will Win proposal.
He also explained that everything intellectual property related to Aave is part of the AAVE ecosystem. This ranges from the Aave brand to the software, which are both being built by the community, further cementing the project’s governance structure. Additionally, Kulechov unveiled the fact that the team is working on Aavenomics 3.0. He added the update will feature an automatic and non-discretionary buyback system that will enhance the protocol’s token economy. But he said further details will be coming in the future.
Aave Expands Its Long-Term Vision
In addition to describing the income model, Kulechov also presented the overall growth strategy of Aave. He said that the protocol is expanding beyond the cryptocurrency space and will be designed to help the entire financial asset system, including real-world assets. He also stressed that the AAVE team and its community members continue to value-accumulate within the AAVE ecosystem. He spoke to clarify governance, ownership, and revenue distribution within the protocol, and to put to rest recent market speculation.
Kulechov also invited the community members to join the upcoming quarterly call of Aave. It will give an update on the project roadmap, on-going development project activities, and future projects. In his recent update, Kulechov affirmed that protocol revenue, product income, and intellectual property still aligns with AAVE. Aave’s expansion plans and the upcoming quarterly call are expected to provide more information about AaveNomics 3.0, its planned buyback automation and more.
Also Read: XRP Derivatives Stay Balanced as Binance Volume Imbalance Holds Near Neutral
