Aave's Marc Zeller teases fee switch vote for token holders
The token value of AAVE increased by 5% following the announcement.
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Following similar moves by other DeFi protocols, Aave (AAVE) could be next to explore the distribution of DAO profits to token holders. In a recent post on X, Marc Zeller, founder of the Aave Chan Initiative, said that Aave may hold a vote on activating a ‘fee switch’ to benefit AAVE token holders next week.
“Temp check to activate ‘fee switch’ next week,” said Zeller after highlighting the platform’s financial health.
According to Zeller, Ave’s Treasury currently holds $50 million worth of cash equivalents for 2.5 years of operational costs, with net DAO profits at approximately $60 million per year.
Zeller had previously said he would publish a “temp check to fee switch Aave stakers” once 100 million GHO were minted.
Anyway, GHO cap & borrow rate will be raised next week doubling Aave DAO GHO revenue
Merit wETH was a success, GHO merit snapshot & distribution next week.
As soon as we hit 100M GHO minted, I'll publish a temp check to "fee switch" Aave stakers.
Just use Aave.
— Marc “Chainsaw” Zeller 👻 🦇🔊 (@lemiscate) March 24, 2024
The proposed fee switch follows Aave’s recent proposal to adjust the risk parameters of the DAI stablecoin. Earlier this year, the Aave DAO approved the staking fee adjustments for its stablecoin GHO, aiming to maintain the token’s peg stability.
A successful vote would see Aave join the ranks of DeFi players like Frax Finance, whose community recently approved a proposal to activate their fee switch. Uniswap is also exploring similar avenues with ongoing discussions about enabling a fee switch mechanism.
Following the news, AAVE’s price increased by 5%, climbing from around $115 to $120, according to data from CoinGecko.
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