Aave is considering a proposal to reduce its annual buyback budget from $50 million to $30 million, with overwhelming support of 99.37% from the community. The proposal comes in response to a 25% decline in Aave DAO's lending fee income, which fell to $7.95 million in January 2026 from $13.5 million in January 2025.
The proposed budget adjustment aims to address a structural deficit, as the optimistic operating budget for 2026 is projected at $190 million, against an annual revenue of $142 million in 2025. If the proposal is approved, it will advance to the formal AIP voting phase, marking a strategic move to ensure Aave's operational sustainability.
Aave Proposes $20M Reduction in Annual Buyback Budget
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