Trading Rewards & Emissions

Over the last few months, we have made multiple adjustments to the trading rewards and emissions of $AEVO, depending on the effectiveness of campaigns.

Since then, the market environment has changed significantly, leading to lower trading volumes across the board and weaker altcoin market. At the same time, our Trading Rewards campaign has reached its planned end of its 4-months duration.

Given the current context, we think it makes sense to not renew the Trading Rewards campaign. Staking rewards will remain unchanged at 100k $AEVO/week.

The Aevo Marketing and Growth Committee may re-enable rewards for certain campaigns, including new product launches, or specific events, but these will not be a multi-month rewards program.

Aevo Buybacks

As specified in the original $AEVO tokenomics (as voted by the DAO in AGP-1), some portion of surplus revenue generated by the Aevo DEX would be used for buybacks.

For the rest of the year, Aevo will be channeling protocol revenues to buying back $AEVO tokens to provide further value accrual for token holders.

Given the current rate of protocol revenues, we will commit to at least 1m AEVO of buybacks every month from July to December.

Methodology

The buybacks will happen on-chain, every week. These buybacks will be performed at random timing to prevent frontrunning. The DAO (through the Treasury and Revenues Management Committee) will use a treasury multisig wallet to perform these buybacks on-chain, and we will publish the wallet so everyone can verify the buybacks.

The AEVO tokens that are bought back are sent back to the main DAO Treasury. Future tokenomics adjustments such as burns, or rewards programs will need to get voted in again by token holders.

Conclusion

With the reduction of emissions and the start of AEVO buybacks, AEVO’s tokenomics is transitioning from an aggressive growth strategy to a more defensive stance that creates more value for token holders.

With the supply of AEVO almost fully vested, we believe that Aevo is in a strong position without the overhang of significant unlocks.