The Aave community introduced a vital proposal on Tuesday, March 4, seeking to optimize AAVE’s economics.
While the crypto space displayed skepticism despite Trump’s crypto strategic reserve declaration, AAVE enthusiasts aim to alleviate the altcoin’s value through different strategies.
These include token buybacks, axing LED token migration, liquidity enhancement, and re-distribution of extra profits.
🚨 UPDATE: @Aave Releases New Tokenomics Plan, Launching Buyback Program and Enabling Fee Redistribution
11
Reply
Copy link
Aave’s tokenomics revamp
The community strives to transform AAVE’s ecosystem as it expects significant revenue growth in the upcoming months.
The proposed shifts include initiating asset repurchases, initially buying back AAVE worth $1M weekly, and increasing the amount with time.
The proposal read:
The ACI considers this proposal can mandate the AFC to start an AAVE buyback and distribute the program immediately at the pace of $1M/week for the first 6 months of the mandate. With new upcoming revenue during 2025 from various sources, the AFC will likely be able to increase the buyback budget via a subsequent proposal.
Notably, the buyback program will enhance AAVE’s demand while ensuring a viable monetary model for the project.
Another change includes re-distributing extra revenue to enrich the protocol’s DeFi ecosystem.
Moreover, the community wants the project to end LEND token migration as it transitions to the upgraded framework.
Lastly, AAVE looks to reinforce liquidity by assimilating the Umbrella security protocols.
That will secure liquidity management while backing the Anti-GHO initiative, designed to simplify GHO debt repayments or allow holders to swap them for interest-bearing StkGHO.
The community will vote for the proposal (if approved), with the AAVE Finance Committee overseeing the entire execution.
The proposal underscored Aave DAO’s dedication to modifying tokenomics as it cements its position in the DeFi industry.
Recently, Aave tapped Sonic blockchain to enrich its decentralized finance platform.
The deployment introduced borrowing and lending opportunities.
It allowed Sonic users to access DeFi-associated rewards on the Aave blockchain.
AAVE price action
The altcoin hasn’t reflected the community’s optimism over the new proposal.
AAVE lost nearly 10% the past day to trade at $186, reflecting the broad market bloodbath.
Chart by CoinMarketCap
The daily high of $204 and the $169 low indicates significant volatility in Aave’s price action.
Cryptocurrencies flashed bearishness today as liquidations exceeded $1 billion.
Despite the uncertainty, Aave’s community targets long-term goals, signaling their trust in the project’s future performance.
The proposed tokenomics overhaul will propel AAVE’s growth in the upcoming times, translating to remarkable price actions.
Crypto analyst Michael van de Poppe expects Aave to hit $450 – $600 in six months.
Massive weekly candle on $AAVE.
That doesn’t imply we’ll continue to fall from here, it’s likely a bottoming procedure.
Expectations in next 3-6 months: $450-600.
241
Reply
Copy link
Enthusiasts will likely follow the voting process and monitor how the proposed changes could impact Aave’s ecosystem and its position in the DeFi industry.
The post Aave community proposes AAVE buybacks and revenue shits in tokenomics overhaul appeared first on Invezz
