On March 4, Marc Zeller, the founder of the Aave Chan Initiative, presented a proposal outlining changes to the Aave token economic system. This proposal includes a restructuring of the protocol’s revenue distribution, the introduction of a new security system, and the establishment of a financial committee.
Innovations in AAVE Revenue Distribution
According to the proposal, while the existing GHO staker distribution model continues, a new token named Anti-GHO will be launched. The proposal states that the cash reserves within Aave’s decentralized organization are sufficient to support both the existing program and the production of the new token.
Security System and Token Buyback Plan
The new security module, named “Umbrella,” aims to protect users against the risk of bad debts. This system operates on a specific liquidity commitment, thereby enhancing the protocol’s resilience to adverse conditions. Additionally, the proposal outlines plans for the periodic buyback and distribution of AAVE tokens.
Details of the proposal indicate a 115% increase in the cash reserves of Aave DAO over recent months, with revenues generated from interest fees and liquidations. This proposal, to be presented for community approval, is regarded as significant for the protocol’s future.
Marc Zeller: “The most important proposal.”
The plan includes actions to buy back AAVE tokens from the markets and transfer them to ecosystem reserves. It was mentioned that the financial service provider TokenLogic will determine expenditures according to the protocol’s budget, aiming to boost investor confidence.
Continuing its pioneering position in the DeFi sector, Aave operates across 14 blockchains. Users can customize loans according to their needs, emphasizing the importance of liquidity management.
These proposed changes could allow the Aave protocol to adopt a different approach to financing and liquidity management. Investors and users believe that these developments could introduce innovations to the sector, with the results following community approval being important data to monitor in the market.