Aave’s tokenholders approved a governance proposal to start buying back the decentralized finance (DeFi) protocol’s governance token, AAVE, as part of a broader tokenomics overhaul, Aave said on April 9. 

The proposal — which was approved by more than 99% of AAVE tokenholders — permits the protocol to purchase $4 million in AAVE (AAVE) tokens, enough for one month of buybacks. 

The move is a “first step” toward a broader plan to repurchase $1 million AAVE tokens weekly for six months. It is also the latest instance of DeFi protocols implementing buyback mechanisms in response to tokenholder demands.

“The goal is to sustainably increase AAVE acquisition from the open market and distribute it to the Ecosystem Reserve,” the proposal said. 

The AAVE token’s price rallied more than 13% on April 9, bringing the protocol’s market capitalization to more than $2.1 billion, according to data from CoinGecko.

The buyback proposal passed with overwhelming support. Source: Aave

Related: Aave proposal to peg Ethena’s USDe to USDT sparks community pushback

Buybacks gain popularity

In March, the Aave Chan Initiative (ACI), a governance advisory group, proposed a tokenomics revamp that would include new revenue allocations for AAVE tokenholders, enhanced safety features for users, and the creation of an “Aave Finance Committee.”

Aave is Web3’s most popular DeFi protocol, with total value locked surpassing $17.5 billion as of April 9, according to DefiLlama. 

It is also among DeFi’s biggest fee generators, with an estimated annualized fee income of $350 million, the data shows. 

Aave is DeFi’s most popular protocol by TVL. Source: DeFILlama

DeFi protocols are under increasing pressure to provide tokenholders with a share of protocol revenues — partly because US President Donald Trump has fostered a friendlier regulatory environment for DeFi protocols in the United States.

Projects including Ethena, Ether.fi and Maple are piloting value-accrual mechanisms for their native tokens.

In January, Maple Finance’s community floated buying back native SYRUP tokens and distributing them as rewards to stakers.

In December, Ether.fi, a liquid restaking token issuer, tipped plans to direct 5% of protocol revenues toward buying back native ETHFI tokens. 

Similarly, Ethena, a yield-bearing stablecoin issuer, agreed to share some of its approximately $200 million in protocol revenues with tokenholders in November.

Magazine: DeFi will rise again after memecoins die down: Sasha Ivanov, X Hall of Flame

Ethereum researcher Virgil Griffith was released from prison custody on April 9, the Bureau of Prison (BOP) officials confirmed to Cointelegraph.

According to crypto developer Brantly Millegan, Griffith will remain in a halfway house for several weeks while waiting to complete the next steps in his parole process.

Griffith was arrested in 2019 for giving a lecture about blockchain technology and its power to circumvent US sanctions to an audience in North Korea.

Virgil Griffith pictured in the center with his parents immediately following his release from prison custody on April 9. Source: Brantly Millegan

The US government claimed the researcher violated the International Emergency Economic Powers Act (IEEPA) by giving North Korea “highly technical information” despite the content of the lecture being widely available knowledge published on the internet.

Griffith’s case highlights the tension between blockchain developers and state powers as the nascent technology continues to create avenues for individuals and countries to escape financial controls, censorship, and surveillance.

Related: Crypto urges Congress to change DOJ rule used against Tornado Cash devs

Virgil Griffith’s legal battle against US prosecutors

In January 2020, a US grand jury indicted Griffith with conspiracy to violate the IEEPA, which gives the Executive Branch of government the power to restrict economic activity between US citizens and foreign powers deemed to be adversarial to the United States.

Griffith initially pleaded not guilty to the charges. The software developer’s attorneys filed a motion to dismiss the case in October 2020, arguing that Griffith did not violate the law by presenting what was already widely available public knowledge.

Griffith on a crypto-focused lecture in 2019 to a North Korean audience. Source: Cointelegraph/United States Department of Justice.

Following a lengthy legal battle, which took nearly two years, Griffith pleaded guilty to violating sanctions laws as part of a plea deal with the US government in September 2021.

The Ethereum researcher was sentenced to 63 months in prison and ordered to pay a $100,000 fine by the court in April 2022. However, the legal battle did not end there.

Two years later, in April 2024, the researcher’s attorneys submitted a motion to reduce the prison sentence, which US prosecutors opposed, citing Griffith’s actions as harmful to national security.

Despite the pushback from the prosecutors, New York Judge Kevin Castel issued a ruling in July 2024 reducing Griffth’s prison sentence to 56 months.

Magazine: The FBI’s takedown of Virgil Griffith for breaking sanctions, firsthand

Bitcoin (BTC) staged a sharp rebound after US President Donald Trump announced a pause on tariffs for non-retaliating countries, reigniting bullish momentum and raising hopes for a potential surge toward the $100,000 mark.

On April 9, BTC/USD surged by approximately 9%, reversing most of the losses it incurred earlier in the week, to retest $83,000. In doing so, the pair came closer to validating a falling wedge pattern that has been forming on its daily chart since December 2024.

A falling wedge pattern forms when the price trends lower inside a range defined by two converging, descending trendlines.

In a perfect scenario, the setup resolves when the price breaks decisively above the upper trendline and rises by as much as the maximum distance between the upper and lower trendlines.

BTC/USD daily price chart ft. falling wedge breakout setup. Source: TradingView

As of April 9, Bitcoin’s price was confined within the falling wedge range while eyeing a breakout above its upper trendline at around $83,000. If it is confirmed, BTC’s main upside target by June could be around $100,000.

Conversely, a rejection from the upper trendline could raise the likelihood of Bitcoin retreating deeper within the wedge pattern, potentially sliding toward the apex near $71,100.

Source: Merlijn The Trader

If a breakout occurs after testing the $71,100 level, the most conservative upside target for BTC could still be as high as $91,500.

Onchain data supports $100,000 Bitcoin outlook

Bitcoin’s rebound appears just before testing a critical onchain support zone between $65,000 and $71,000, reinforcing the cryptocurrency’s bullish outlook toward the 100,000 mark.

Notably, the $65,000-71,000 range is based on two important Bitcoin metrics—active realized price ($71,000) and the true market mean ($65,000).

Bitcoin short-term onchain cost basis bands. Source: Glassnode

These metrics estimate the average price at which current, active investors bought their Bitcoin. They filter out coins that haven’t moved in a long time or are likely lost, giving a relatively accurate picture of the cost basis for those still participating in the market.

In the past, Bitcoin has spent about half the time trading above this price range and half below, making it a good indicator of whether the market is feeling positive or negative, according to Glassnode analysts.

“We now have confluence across several onchain price models, highlighting the $65k to $71k price range as a critical area of interest for the bulls to establish long-term support,” they wrote in a recent weekly analysis, adding:

“Should price trade meaningfully below this range, a super-majority of active investors would be underwater on their holdings, with likely negative impacts on aggregate sentiment to follow.”

Related: Bitcoin has ‘fully decoupled’ despite tariff turmoil, says Adam Back

Bitcoin’s worst-case scenario is a decline toward $50,000

Breaking below the $65,000-71,000 range could worsen Bitcoin’s probability of retesting $100,000 anytime soon. Such declines would also lead to the price breaking below its 50-week exponential moving average (50-week EMA; the red wave).

BTC/USD weekly price chart. Source: TradingView

The 50-week EMA—near $77,760 as of April 9—has historically acted as a dynamic support during bull markets and a resistance during bear markets, making it a crucial trend-defining level.

Losing this support could open the door for a steeper pullback toward the 200-week EMA (the blue wave) at around $50,000. Previous breakdowns below the 50-week EMA have resulted in similar declines, namely during the 2021-2022 and 2019-2020 bear cycles.

A rebound, on the other hand, raises the likelihood of a $100,000 retest.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.