Summary
- Aave (AAVE) DAO is holding a vote on an ARFC proposal to cut the annual token buyback budget from $50 million to $30 million, with support at about 99.4%.
- Aave’s lending-fee revenue has declined by about 25% from its recent peak, and January revenue this year fell more than 40% year on year to $7.95 million from $13.5 million.
- Aave’s operating budget for this year is estimated at about $190 million, up about 5.6% from $142 million last year, and the proposal said a buyback restructuring is needed to ensure operational sustainability.
Forecast Trend Report by Period
Aave (AAVE), a decentralized lending protocol built on Ethereum (ETH), is pushing a plan to sharply reduce its annual token buyback budget.
According to Odaily on the 15th (local time), Aave’s decentralized autonomous organization (DAO) has recently launched a governance vote on an “ARFC (Aave Request for Comment)” proposal that would cut the annual token buyback budget from $50 million to $30 million. Support for the agenda stood at about 99.4% as of that day.
The move to reduce the buyback budget comes as Aave’s revenue is trending lower. Under the proposal, Aave’s lending-fee revenue has fallen by about 25% from its recent peak. Revenue in January this year came to $7.95 million, down more than 40% from a year earlier ($13.5 million).
By contrast, Aave’s operating costs are rising. The proposal estimates Aave’s operating budget this year at about $190 million, up about 5.6% from last year ($142 million). The document said that “to ensure (Aave’s) operational sustainability, a buyback restructuring is necessary.”
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul
