A potential vote to activate a ‘fee switch’ on the Aave platform, aiming to boost stakers' rewards, has been proposed by Aave Chan Initiative founder Marc Zeller. The decision, slated for the upcoming week, could mark a significant shift in the platform's governance.
Netting a staggering $50 million annually, Aave DAO's profits are on an upward trajectory, as indicated by Zeller. However, the proposed move might alter the utilization of these profits, potentially impacting the platform's ecosystem.
In a bid to enhance stakers' incentives, Aave DAO aligns its strategies with industry trends witnessed in notable players like Uniswap DeFi and Frax Finance. Frax Finance recently greenlit the reintroduction of its protocol fee switch, while Uniswap is eyeing governance upgrades to redistribute protocol fees to UNI token holders.
The Aave platform's native token, AAVE, experienced a notable surge of over 5% in the past 24 hours following this announcement. Presently trading at $121, with a market cap of $1,790,746,874, AAVE's recent trajectory, however, has been bearish, with a 1.20% decline in the past month and 3.25% dip over the week.