Aevo Reignites Monthly AEVO Token Buybacks After AGP-2 Approval

Aevo, a popular decentralised derivatives exchange, has officially restarted its monthly AEVO token buybacks. This comes after the community approved the AGP-2 proposal. It’s a strategic move aimed at boosting AEVO’s value and aligning the community’s interests.

How the Buybacks Work

In crypto, buybacks mean the platform uses its own funds to buy back tokens from the open market. These tokens are usually taken out of circulation, which can help reduce supply and possibly increase the token’s value over time.

Aevo is using extra revenue, which is what’s left after paying for operations and setting aside money for its Insurance Fund, to fund these monthly buybacks. All purchases will happen transparently on-chain.

This creates a clear value loop. Therefore, as Aevo earns more through trading fees, some of that value flows back to AEVO token holders. 

The AGP-2 Proposal: A Community-Driven Decision

The resumption of the buyback program stems from the successful passage of the AGP-2 (Aevo Governance Proposal 2). This proposal outlines a structured approach to monthly buybacks, specifying that 1 million AEVO tokens will be repurchased each month during Q2 and Q3 of 2025 (May to July), mirroring the amounts used in 2024 buybacks.

Importantly, the proposal emphasises that the acquired AEVO tokens will remain under DAO control and will not be distributed, burned, or otherwise utilised until a separate governance proposal determines their use. This approach ensures transparency and community involvement in future decisions regarding the repurchased tokens.

Potential Impacts on AEVO Token Holders

The reinstated buyback program carries several implications for AEVO token holders:

• Price Support: Regular buybacks can provide consistent buying pressure, potentially stabilising or increasing the token's market value.
  
   
• Supply Reduction: By removing tokens from circulation, the effective supply decreases, which can be a deflationary force.
  
   
• Increased Holder Confidence: The protocol's active investment in its token may boost confidence among existing and potential holders, encouraging long-term holding.
  
   
• Alignment of Interests: The buyback strategy aligns the success of the Aevo platform with the value of the AEVO token, benefiting the community.
   

However, it's essential to consider potential challenges:

• Execution Risk: The effectiveness of buybacks depends on execution methods and market liquidity.
  
   
• Market Conditions: Buybacks may not fully counteract strong bearish market trends.
  
   
• Sustainability: The long-term viability of buybacks hinges on Aevo's ability to consistently generate sufficient revenue.

Aevo's Role in DeFi

Aevo is a fast, high-performance decentralised exchange (DEX) built for traders. It focuses on options and perpetuals—advanced trading tools that let users bet on price movements.

The tech behind Aevo is impressive. It runs on a custom Ethereum Layer 2 rollup. Orders are handled off-chain for speed but settled on-chain for security. It’s a blend of centralised exchange performance and DeFi transparency.

In a crowded DeFi space, Aevo stands out by focusing on both strong technology and smart tokenomics. Buybacks are one way Aevo shows it’s serious about long-term growth and community trust.

Final Thoughts

Bringing back AEVO token buybacks is more than a headline—it’s a big step for Aevo. It shows the project is focused on growing sustainably and sharing value with its users.

By linking platform revenue directly to token support, Aevo is building trust and setting an example for other DeFi protocols. As the space continues to mature, moves like this will likely become the standard for serious projects.