Is AAVE a Deflationary Token?

[AIcash]

Yes, AAVE has deflationary elements built into its design. The total supply is capped, and parts of the protocol’s revenue can be used to buy back AAVE from the market, reducing circulating supply over time depending on governance decisions.

In addition, some AAVE is periodically locked or staked in the Safety Module, temporarily reducing liquid supply. While deflation alone does not guarantee price appreciation, these mechanics align AAVE’s value more closely with the long-term usage and success of the Aave protocol.

[johnblockbuster]

aave governance actually matters way more than ppl realize