The Aave DAO has given the green light to a $4 million buyback program for its native token, AAVE, launching the initial phase of an ambitious initiative to revamp the protocol’s token economics. This significant vote marks a crucial step toward bolstering the Aave ecosystem. 99.63% of Aave DAO members voted in favor of the proposal. The DAO authorization empowers the Aave Finance Committee (AFC), responsible for managing the protocol’s treasury and financial operations, to commence purchasing AAVE tokens on the open market. These tokens will be allocated to the Ecosystem Reserve, furthering the Aave’s long-term goals. 💰 This initial phase is expected to run for one month before potentially expanding into a six-month initiative with an additional $1 million in weekly purchases if successful. This phased approach ensures careful financial deployment while simultaneously enabling Aave to capture its own tokens from the secondary market to strengthen the ecosystem’s value. The proposal was met with optimism, with Marc Zeller, founder of the Aave Chan Initiative, expressing his confidence and highlighting the potential for this initiative to significantly impact the DeFi space. 📈