Aave Pushes ‘Aavenomics’ Token Revamp With Buybacks

Aave Pushes ‘Aavenomics’ Token Revamp With Buybacks

Aave governance is moving forward with a major Aavenomics overhaul, introducing a revenue redistribution model, buybacks, and a new safety system to improve the protocol’s stability. The proposal includes a $1 million per week AAVE buyback program, overseen by the newly formed Aave Finance Committee (AFC).

A key change is "Anti-GHO," a non-transferable ERC-20 token that replaces the GHO discount system and rewards AAVE and StkBPT stakers. “Anti-GHO will be generated by all AAVE and StkBPT Stakers,” wrote Marc Zeller, emphasizing that the update ensures a sustainable incentive structure while maintaining protocol efficiency.

The Umbrella safety system will protect against bad debt and potential bank runs, keeping liquidity locked until a cooldown period ends. Zeller claims this mechanism will safeguard Aave users from losses "up to billions," while also opening new opportunities for cross-chain lending and DeFi integrations.

With cash reserves up 115% since August 2024, Aave is in a strong position to fund these changes without tapping into additional treasury resources. The Aavenomics update will now move to community governance votes, with full implementation expected to roll out in phases.

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El Salvador Adds 19 Bitcoin as IMF Limits BTC Reserves

El Salvador’s President Nayib Bukele purchased 19 BTC on Monday, despite the IMF’s new $1.4 billion aid package restricting public Bitcoin accumulation. The IMF deal mandates that El Salvador halt voluntary BTC purchases, citing volatility and low trust as barriers to adoption. The country holds over 6,081 BTC, worth $600 million, managed by its Bitcoin agency.

As part of the agreement, El Salvador amended its Bitcoin Law, removing legal tender status and making merchant acceptance optional. The EFF package aims to cut debt to 81% of GDP by 2029, while wage reductions and social spending protections remain key conditions. Despite restrictions, Bukele’s Bitcoin strategy remains unchanged, with BTC still a core asset in the country’s reserves.

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Trump Backs Senate Vote to Kill IRS Crypto Rule

The White House confirmed that Trump will sign a repeal of the IRS rule targeting DeFi tax reporting, if it passes Congress. On Tuesday, the Senate advanced Senator Ted Cruz’s resolution with bipartisan support from 70 lawmakers, setting up a final vote. Trump’s crypto czar David Sacks called the rule an “unnecessary burden on DeFi”, arguing it stifles innovation in the U.S.

The IRS policy requires DeFi users to report gross proceeds on crypto transactions, a move critics say could drive crypto businesses offshore. The House has already approved the resolution in committee, and Senate leaders expect a full vote later this week. If signed into law, this would overturn one of the most controversial crypto tax rules of the past decade.

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Grayscale Pushes Hedera ETF as Altcoin Products Expand

Grayscale filed for a Hedera (HBAR) ETF on Monday, marking its sixth altcoin ETF application in an aggressive push for regulated crypto investment products. The filing follows pending applications for Solana, XRP, Dogecoin, Cardano, and Polkadot ETFs, signaling a potential shift in SEC policy toward altcoins.

With the SEC under new leadership, altcoin ETFs now face higher approval odds, as demonstrated by XRP and Dogecoin filings entering review. Grayscale’s latest move reflects institutional demand for non-Bitcoin assets, especially as Trump’s administration signals stronger crypto support. If approved, HBAR could be among the first altcoins to gain U.S. ETF status, setting a precedent for other projects.

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Data of the Day

THORChain processed $5.4 billion in swaps and generated over $5 million in fees after the Bybit hacker laundered stolen funds through the protocol. The Lazarus Group, a North Korean state-backed hacking syndicate, used THORChain to move $605 million in illicit assets, avoiding centralized exchange scrutiny.

The incident reignited debate over THORChain’s lack of transaction monitoring, with critics accusing it of being a safe haven for criminal activity. A THORChain developer resigned on Feb. 28 after the protocol rejected a proposal to blacklist hacker-linked wallets, reinforcing its censorship-resistant stance.

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More Breaking News

• SBI VC Trade will be the first to list Circle’s USDC in Japan under the country’s new financial framework for regulated stablecoins.
• FTX and Alameda unstaked 3 million Solana tokens worth $431 million, marking their largest SOL unlock since November 2023.
• MegaETH blockchain will deploy its public testnet on March 6, onboarding developers before opening access to users.
• Belarusian President Alexander Lukashenko has ordered the development of state-backed crypto mining to utilize the country’s excess electricity.
• Mexican billionaire Ricardo Salinas revealed that 70% of his liquid portfolio is Bitcoin-related, alongside gold and shares in his own companies.
• Turkish digital bank BankPozitif will debut crypto custody services in collaboration with Swiss blockchain platform Taurus by June 2025.
• Yuga Labs announced that the SEC has officially closed its investigation, affirming that NFTs are not classified as securities.
• Australia’s government confirmed it has no plans to establish a strategic Bitcoin reserve, despite Trump's recent announcement in the US.

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