Aave DAO Proposes Major Changes to Boost AAVE Token Value
Aave DAO proposed a plan to enhance value for the AAVE token and reward users. Key points include:
- AAVE tokens increased by 21% in 24 hours, compared to a 3.5% rise in the broader market.
- The "Aavenomics update" was initially approved in August 2024. Aave's cash reserves grew by 115% to $115 million.
- The GHO stablecoin reached a supply of $200 million with strong revenues.
- Proposed profit sharing increases for users staking AAVE tokens.
- Introduction of Anti-GHO, a non-tradable token for wiping out GHO debt or converting into staked GHO (StkGHO) for rewards, derived from GHO revenue of $6 million annually.
- A “buy and distribute” program aims to allocate $1 million weekly to buy AAVE tokens from the open market for user rewards.
- The "Umbrella" system is designed to protect users from losses during market crashes.
- A formal on-chain proposal will be presented following community feedback.