Aevo has experienced a notable surge in price after the Paradigm-backed decentralized derivatives layer 2 platform announced it completed the repurchase of 1 million tokens.
On Sept. 4, the Ethereum (ETH)-based crypto options and perpetuals trading platform revealed its August buybacks, totaling 1 million Aevo (AEVO). The price of AEVO saw a slight increase, jumping nearly 5%, from lows of $0.29 to highs of $0.33.
Aevo’s repurchase program
The Aevo team shared on X that the project has begun its buyback process. For its token repurchases in the past month, it reacquired 1 million AEVO at an average price of $0.317, with these transactions taking place on Sept. 2 on the Binance crypto exchange.
All repurchased tokens were sent to a treasury multisig, part of a program that the derivatives L2 platform plans to execute monthly until December 2024.
“With the supply of AEVO almost fully vested and the ongoing buybacks, we believe this is a good starting point to create long term value for $AEVO tokenholders.”
Aevo on X.
What happens to repurchased tokens?
Aevo committed to a buyback of its native token in an update on its tokenomics in June.
In the blog post on June 26, the DEX platform noted that a portion of its revenue would go into buying back AEVO. The weekly buybacks happen on-chain, with transactions randomized to prevent frontrunning.
Tokens sent to the treasury’s multisig will require a governance vote by AEVO holders before being used in rewards programs, token burns, or other adjustments to the tokenomics.
AEVO has a circulating supply of 870,377,904 as of September 4, 2024, while the total supply is 1 billion tokens.
Source: https://crypto.news/aevo-price-gains-after-1m-token-repurchase/