‘Marc Zeller hints at fee switch vote for Aave token holders’

Aave (AAVE) is potentially gearing up to distribute DAO profits to token holders, following in the footsteps of other DeFi protocols. Marc Zeller, founder of the Aave Chan Initiative, hinted at the possibility of activating a ‘fee switch’ to benefit AAVE token holders in a recent post.

Zeller revealed that Aave’s Treasury currently holds million in cash equivalents, which can cover 2.5 years of operational costs, with net DAO profits totaling around million per year. He previously mentioned that a vote on the fee switch would be considered once 100 million GHO were minted.

In a tweet, Zeller mentioned that the GHO cap and borrow rate would be raised, potentially doubling Aave DAO GHO revenue. The proposed fee switch comes on the heels of Aave’s recent approval to adjust the risk parameters of the DAI stablecoin, highlighting the platform’s commitment to maintaining stability.

If the vote on the fee switch is successful, Aave will be following in the footsteps of other DeFi projects like Frax Finance and Uniswap, who have also explored similar mechanisms. The news of the potential fee switch caused AAVE’s price to increase by 5% from 5 to 0, according to data from CoinGecko.

Overall, Aave’s potential move to distribute DAO profits to token holders underscores the platform’s commitment to rewarding its community and improving its overall ecosystem.