Aave Governance Proposal Unveils Strategic Aavenomics Update and $1 Million Weekly Buyback Plan

On March 4th, COINOTAG News reported that Marc Zeller, a significant service provider within the Aave DAO ecosystem, has presented a pivotal governance proposal. This initiative aims to implement the inaugural phase of improved Aavenomics, focusing on essential updates to the AAVE tokenomics, the reallocation of protocol surplus income, and the phasing out of the LEND token. Furthermore, it emphasizes the importance of enhancing AAVE’s secondary liquidity management.

The proposal also introduces a protective measure named Umbrella, designed to safeguard Aave users, while suggesting that surplus income from the Aave DAO be allocated to support Umbrella aToken stakeholders as a means of encouraging growth. Additionally, it highlights strategic avenues within the Layer 2 (L2) ecosystem, aimed at optimizing revenue sources for Aave’s ongoing expansion.

Moreover, the plan allows Tokenlogic to grant token approvals to AFC, facilitating efficient fund management via monthly AIPs. This collaboration is set to enable AFC to engage with market makers to acquire AAVE tokens in the secondary market, subsequently channeling these assets into the ecosystem reserve. ACI anticipates that the adoption of this proposal could instigate an AAVE buyback and distribution strategy, potentially mobilizing $1 million each week for the initial six months post-approval.