Aave token holders approved a governance proposal to start buying the governance token of the Decentralized Financing Protocol (DEFI), Aave, as part of a wider tokenomics overhaul, said Aave on April 9.
The proposal – which has been approved by more than 99% of AAVE token holders – allows the protocol to buy $ 4 million in Aave (Aave) tokens, enough for a month of buyouts.
This decision is a “first step” to a wider plan to buy $ 1 million Aave Tokens each week for six months. It is also the latest Instance of Protocols DEFI implementing buyout mechanisms in response to requests from chip holders.
“The objective is to permanently increase the acquisition of Aave on the free market and to distribute it to the ecosystem reserve,” said the proposal.
The price of the AAVE token joined more than 13% on April 9, bringing the market capitalization of the protocol to more than $ 2.1 billion, according to Coingecko data.
The repurchase proposal was adopted with overwhelming support. Source: Aave
In relation: Proposal of the USDT community to the USDT community
Researchs gain popularity
In March, Aave Chan Initiative (ACI), a governance consulting group, proposed an overhaul of Tokenomics which would include new income allocations to AAVE token holders, from improved security characteristics for users and the creation of an “Aave finance committee”.
Aave is the most popular web3 challenge protocol, with a total locked value exceeding $ 17.5 billion on April 9, according to Defilma.
It is also one of the biggest generators of DEFI fees, with an annualization income estimated at $ 350 million, according to data.
Aave is the most popular TVL DEFI protocol. Source: Defillama
DEFI protocols are subject to growing pressures to provide tokens with a share of the protocol income – in part because US President Donald Trump has favored a more user -friendly regulatory environment for protocols DEFI in the United States.
Projects like Ethena, Ether.Fi and Maple pilot valuable increase mechanisms for their native tokens.
In January, the Maple Finance community floated to buy native syrup tokens and distribute them as awards to stakers.
In December, Ether.fi, a liquid replenishment tokens, made plans to direct 5% of the protocol income to buy native ethfi tokens.
Similarly, Ethena, a efficiency stablecoin transmitter, agreed to share some of her approximately $ 200 million in protocol income with chip holders in November.
Review: DEFI will increase again after Mamecoins ends: Sasha Ivanov, X Hall of Flame
