Aave Chan Initiative founder Marc Zeller announces the potential vote for fee switch activation and distribution on Aave.
Zeller hints at its possible impact on the platform’s use of its annual net profits.
The platform’s move aligns with Frax Finance and Uniswap DeFi’s recent proposals to improve fee distribution schemes.
Aave Chan Initiative founder Marc Zeller announced a potential vote to activate a ‘fee switch’ on the decentralized language platform Aave. In an X post, he declared that the vote to check whether to turn on the fee switch and distribute fees to holders will possibly happen in the next week.
The Aave treasury "Cash" (Eth & Stables) is now at 50m$. (2.5 years of operational costs)Net DAO profits are currently at $50m/year and growing.Temp check to activate "fee switch" next week.You can track the treasury balances with @zapper_fi 👇https://t.co/HNRTcA5jCf
— Marc “Chainsaw” Zeller 👻 🦇🔊 (@lemiscate) April 6, 2024
According to Zeller’s post, the net DAO profit is currently at $50 million per year, and it keeps on growing. The post hinted at the new move’s possible impact on the Aave DAO’s use of its annual net profits. However, announcing the next week’s vote proposal, he wrote on X, “Temp check to activate “fee switch” next week.”
Previously, in an X post, Zeller shared insights on the Aave DAO’s fee distribution for GHO stakers on merit. The post read, “A new version of the safety module will propose to the governance to distribute fees to stakers.”
For now, GHO stakers get fees via Merit (next week).A new version of the safety module will propose to the governance to distribute fees to stakers.
— Marc “Chainsaw” Zeller 👻 🦇🔊 (@lemiscate) March 16, 2024
Aave’s plans to improve stakers’ rewards align with the recent moves of prominent industrial leads like Uniswap DeFi and Frax Finance. The decentralized stablecoin protocol Frax Finance recently approved the proposal to reimplement its protocol fee switch. Similarly, Uniswap has also proposed upgrading its protocol governance, focusing on the redistribution of protocol fees to UNI token.
Amidst this groundbreaking announcement, the Aave platform’s native token AAVE has surged by more than 5% over the last 24 hours. As of press time, AAVE is trading at $121, with a market cap of $1,790,746,874. Though the token exhibits a daily surge, AAVE’s trajectory over the past month has been bearish. The current price marks a decline of 1.20% in one month and 3.25% in one week.
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