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Aave Proposes Reducing Annual Buyback Budget from $50M to $30M

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Aave proposes reducing its annual buyback budget from $50M to $30M, according to Odaily. The ARFC proposal reflects a 25% decline in lending fee income, from $13.5M in January 2025 to $7.95M in January 2026. Aave DAO’s $19M 2026 operating budget is projected to result in a structural deficit. On-chain data indicates a need for stricter financial controls. If approved, the proposal will proceed to a formal AIP vote. Traders are advised to monitor altcoins as DeFi dynamics shift.

Odaily Planet Daily reports that the Snapshot page shows Aave is voting on ARFC proposal to reduce the annual buyback budget from $50 million to $30 million, with current support at 99.37%.

The proposal indicates that Aave DAO’s lending fee income has decreased by approximately 25% from its peak, reaching $7.95 million in January 2026, down from $13.5 million in January 2025. Meanwhile, an optimistic estimate for the 2026 operating budget is $190 million, creating a structural deficit compared to the $142 million in annual revenue in 2025. Therefore, adjusting the buyback program is a necessary step to ensure operational sustainability.

If the ARFC proposal is approved, the next step will proceed to the formal AIP voting phase.

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