Aave DAO has unveiled a new proposal for a $50 million buyback, building on a previous initiative aimed at addressing the perceived undervaluation of the AAVE token. This strategic move reflects a shift towards a more structured approach in managing the DAO's treasury and governance, as The source notes that such actions are crucial for enhancing investor confidence.
Initial Proposal for $20 Million Buyback
The initial proposal, introduced on October 17, called for a $20 million buyback, highlighting the token's significant undervaluation compared to its fundamentals. Proponents argued that AAVE's treasury had sufficient surplus cash to facilitate this buyback without jeopardizing operational expenses or reserves.
Latest $50 Million Proposal for Perpetual Buyback Mechanism
The latest $50 million proposal aims to establish a perpetual buyback mechanism, integrating it into the DAO's governance and treasury management. This transition signifies a departure from reactive market strategies, favoring a systematic, rule-based capital management approach akin to traditional corporate financial practices.
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