Aave founder Stani Kulechov considers token burn for Aavenomics 3.0

Stani Kulechov, founder of DeFi lending giant Aave, has floated the idea of adding a token burn mechanism to the protocol’s evolving economic framework. The consideration, shared publicly on September 28-29, represents a potentially significant escalation in how Aave returns value to its token holders. If implemented, the burn would mark a departure from the current buyback model, which accumulates purchased tokens in reserves. Instead of parking bought-back AAVE in the DAO’s Ecosystem Reserve, a burn would destroy them permanently, shrinking the total supply with each transaction. From buybacks to burns In early 2025, Aave kicked off its first structured buyback program under what became known as Aavenomics Part One. That initiative authorized spending up to $1 million per week to purchase AAVE tokens from the open market. By mid-2026, the program had accumulated more than 205,000 AAVE tokens sitting in the protocol’s reserves. Then came the “Aave Will Win” governance framework, which passed in April 2026. That proposal formalized a new revenue allocation model, directing 100% of revenue from the Aave Protocol and its GHO stablecoin toward the DAO treasury and AAVE token holders. ...