Why did the Senate give Octavian the name Augustus in 27 BCE?

In 27 BCE, after Octavian offered to lay down his powers and "restore" the Roman Republic, the Senate rejected his proposal and instead granted him administrative control over key provinces, including Spain, Gaul, and Syria. Three days later, the Senate bestowed upon him the name Augustus.1

The name was derived from the Latin adjective augustus, which means "worthy of honor" or "venerable". By accepting this title, Octavian—who had become the undisputed master of the Roman world following his victory at the Battle of Actium—was able to solidify his unique position as the princeps, or "first citizen," while maintaining the appearance of respecting traditional republican forms. This act was part of his broader strategy to establish a stable, monarchic regime that could satisfy a war-weary population and the senatorial class.2314