AAVE Soars 21% as Aave DAO Proposes Bold Economic Revamp
Aave DAO has unveiled a major proposal aimed at strengthening AAVE’s tokenomics, boosting staking rewards, and enhancing protocol security. The move follows a surge in Aave’s treasury to $115 million—up 115% since mid-2024—and GHO stablecoin’s supply exceeding $200 million.
The announcement fueled a 21% surge in AAVE’s price, outperforming the broader market’s 3.5% uptick, as tracked by the CoinDesk 20 (CD20) index.
Highlights of the Proposal:
- Enhanced Staking Incentives – A larger cut of Aave’s revenue will go toward rewarding AAVE stakers.
- Anti-GHO Mechanism – A new, non-tradable token allowing holders to erase GHO debt or convert it into yield-bearing StkGHO, backed by 50% of GHO’s $12 million annual revenue.
- $1 Million Weekly Buyback Program – Aave DAO aims to support AAVE’s price by consistently repurchasing tokens from the open market.
- ‘Umbrella’ Safety Net – Aave introduces a first-of-its-kind system designed to shield users from bad debt in extreme market conditions.
Marc “Billy” Zeller, a core contributor, described the update as “the most significant in Aave’s history.” Community discussions are ongoing, with an on-chain vote expected soon.
