Aave Proposes Major Tokenomics Overhaul Following Successful Community Temperature Check

A major contributor to Aave, Marc Zeller, has submitted a proposal to upgrade the protocol’s tokenomics after a successful community temperature check last August. The proposal, aimed at restructuring revenue allocation, involves sunseting the LEND smart contract, introducing improved liquidity management, and creating the Aave Finance Committee to manage a $115 million treasury. It includes a six-month buyback strategy for AAVE tokens with a budget of $1 million weekly. Zeller considers this plan the ACI's most pivotal proposal yet, aimed at reducing liquidity financing costs and rewarding stakers through new revenue distribution models.