Aave to Seek Community Feedback on Fee Distribution Proposal
Following in the footsteps of Uniswap and Frax, Aave is the next DeFi project looking to propose revenue sharing from transaction fees to its token holders.
Aave to Gather Community Input on Fee Distribution Proposal
Marc Zeller, a senior member of Aave's management team, has announced that the DeFi lending protocol will soon seek community input on activating the “fee switch.” This feature would allow the redistribution of transaction fee revenue back to AAVE token holders.
According to Zeller, Aave currently generates an annual fee revenue of $60 million, which is sufficient to cover the project’s operational costs for five years.
The Aave treasury "Cash" (Eth & Stables) is now at 50m$. (2.5 years of operational costs)
— Marc “Billy” Zeller 👻 🦇🔊 (@lemiscate) April 6, 2024
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
Next week, Aave will post the fee distribution proposal on its community forum and initiate a preliminary vote to gather user opinions, Zeller confirmed.
At the time of writing, AAVE token prices are experiencing a slight increase due to this news.
1D chart of the AAVE/USDT pair on Binance at 10:45 AM on April 7, 2024
The fee distribution proposal for Aave was first revealed by Marc Zeller in mid-March 2024, which subsequently caused the token price to surge to $153 - the highest level since April 2022.
As previously reported by Coin68, the trend of DeFi projects sharing fees with their users was initiated by leading DEX Uniswap in February. Uniswap has since voted in favor of the proposal within its community but has not yet announced the implementation date.
Similarly, another major DeFi project, Frax, has also posted a proposal to distribute fees to FXS holders.
