Aave’s Potential Fee Switch

The decentralized lending platform Aave may implement a fee switch to allocate some of its net excess revenue back to key users.

Marc Zeller, founder of the Aave Chan Initiative (ACI), shared a temperature check on this development on Thursday. This initiative is aimed at receiving community input before possibly moving to a snapshot vote.

Zeller emphasized that with the ACI, the DAO is now prepared to take a significant step in the protocol’s maturity by proposing a clear pathway for redistributing protocol net excess revenue to essential participants in the Aave ecosystem. This could foster new positive dynamics and synergies within the industry.

Additionally, Zeller mentioned on social media platform X that the proposal could enable Aave protocol restaking, thereby generating new revenue streams for both Aave and its users.

Aave is a decentralized lending protocol with more than $12.5 billion in total value locked. In May, the protocol unveiled its V4 roadmap, which includes enhanced support for Aave’s GHO stablecoin and other platform improvements, as reported by The Block.

As of now, Aave’s native token, AAVE, is trading at $91.27 after experiencing a 3.13% drop in the last 24 hours, according to The Block Prices.