AAVE price climbs as founder talks of “fee switch” to redistribute fees to stakers and holders
- AAVE founder discussed the redistribution of fees to the asset’s stakers and holders, in a “fee switch” move.
- The platform’s DAO earns approximately $50 million in net profits annually.
- The founder announced a temperature check to activate the fee switch next week.
Aave (AAVE), a DeFi protocol that earns $50 million in profits every year, is considering the redistribution of fees among the token’s stakers and holders. The founder Marc Zeller said that the platform’s Decentralized Autonomous Organization (DAO) earns enough profits to cover operational expenses for the next five years.
AAVE founder talks of “fee switch,” strategic move to benefit stakers
AAVE founder discussed a strategic move in a recent tweet on X. Zeller spoke of “fee switch,” or rotation of fees collected to stakers and holders of the token.
The Aave treasury "Cash" (Eth & Stables) is now at 50m$. (2.5 years of operational costs)
— Marc “Chainsaw” 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
The AAVE DAO currently earns enough annual profits to pay for operational expenses for at least five years and the founder said that a temperature check will now be conducted to see whether the community is interested in the potential redistribution of transaction-generated fees to stakers and holders of the DeFi token.
The founder had suggested a revamped safety module for fee distribution to stakers in March.
In response to the “fee switch” proposal by Zeller, AAVE price climbed 3% on the day.
AAVE price is $122.07 on Binance, at the time of writing.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
