Aave Considers Reducing Annual Buyback Budget Amid Revenue Decline

Aave is currently voting on a proposal to reduce its annual buyback budget from $50 million to $30 million. According to Odaily, the proposal has garnered a 99.37% approval rate so far. The proposal highlights that Aave DAO's lending fee income has decreased by approximately 25% from its peak, with revenue in January 2026 at $7.95 million, down from $13.5 million in January 2025. Meanwhile, the optimistic operating budget for 2026 is projected at $190 million, which would result in a structural deficit compared to the $142 million annual revenue in 2025. Adjusting the buyback plan is deemed a necessary step to ensure operational sustainability. If the ARFC proposal is approved, it will proceed to the formal AIP voting stage.