Aave founder Stani Kulechov has said an AAVE token burn mechanism is under consideration for Aavenomics 3.0. The comment raises the prospect of adding permanent token removal to the decentralized lending protocol’s tokenomics overhaul, alongside its plans for revenue-funded buybacks.
“We’re considering also burn for Aavenomics 3.0,” Kulechov wrote in response to a comparison of crypto projects’ buyback models. His brief reply did not specify a launch date, the amount of AAVE that could be burned, or how such a mechanism would operate.
Aave’s buyback program began in April 2025, using protocol revenue to purchase AAVE on the open market. The protocol’s documentation describes acquired tokens being directed to the DAO’s Ecosystem Reserve, where they support staking rewards, grants, and service provider payments through governance-approved programs.
Burning tokens would permanently remove them from circulation, while holding repurchased AAVE in a reserve leaves it available for future distribution. Kulechov’s statement did not explain whether burns would apply to future purchases, existing holdings, or both, leaving the balance between supply reduction and ecosystem funding undefined.
The buyback program has also faced interruptions. TokenLogic disclosed in April that purchases had been paused from April 19 following the rsETH bridge incident, as the DAO preserved financial flexibility for the recovery effort. The latest burn comment does not itself announce a restart of purchases.
Disclaimer: CoinScreamer is an independent media brand owned and operated by NuvexMedia LLC, publishing news, research, and market insights on digital assets and related technologies. NuvexMedia LLC invests in and collaborates with companies across the digital asset, blockchain, and technology sectors. These relationships do not influence CoinScreamer’s editorial coverage, and the publication maintains full editorial independence to provide accurate, timely, and objective information. © 2025 NuvexMedia LLC. All rights reserved. This content is for informational purposes only and should not be considered legal, tax, investment, financial, or other professional advice.
