Marc Zeller, the founder of the Aave Chan Initiative (ACI), opened a proposal for revamping AAVE tokenomics on March 4, which would include a new revenue redistribution model, an “umbrella” safety system to protect against bank runs, and the creation of the “Aave Finance Committee” (AFC).
The proposal is part of the ongoing AAVE tokenomics and is subject to community approval. In X, Zeller called the proposal “most important proposal” in AAVE history.
The new revenue redistribution model involves maintaining the previous distribution for GHO stakers, also called the “Merit” program, and adds a new token called anti-GHO, which is a non-transferrable ERC-20 token.
Related: What’s next for Defi in 2025?
Source: Marc “Billy” Zeller
As the proposal record, “Anti-GHO will develop all AAVE and STKBPT stakers,” with Zeller that the current cash reserve in decentralized autonomous organization (DAO) should cover both the merits of the program’s merits and anti-GHO generations.
According to the proposal, Aave Dao’s cash component has increased by 115% since August 2024. As a lending protocol, AAVE generates income from interest fees earned from loans and liquids.
The umbrella safety system, also suggested by token buyback
Umbrella, a new version of the AAVE safety module, can protect users from bad debt “to billion -billion,” according to the proposal. It also creates a promise of liquidity that will remain in the protocol until the “cooldown age.” In Zeller’s point of view, the bank will make it “less harmful” and allow the development of new products and income streams.
In addition, Zeller suggested a buyback and redistribution plan. “While remains conservative in AAVE’s treasury funds, ACI considers this proposal to order the AFC to start an AAVE BUYBACK and distribute the program immediately at a speed of $ 1m/week for the first 6 months of mandate,” Zeller said.
Related: A man’s tokenholders yield mining in bitcoin
The proposal will allow the AFC to “perform and/or cooperate with market makers to buy AAVE tokens in the second market and distribute it to the ecosystem reserve.” Tokenlogic, a financial service provider for Aave Dao, is “size these purchases according to the general protocol’s general budget, with the aim of eventually matching – and even exceeding – all AAVE protocol spending.”
Defi on the rise
According to In Defilma, the decentralized financial (DEFI) lending protocols have $ 39.5 billion in total amount locked (TVL), from $ 10.6 billion on December 30, 2022. AAVE, running 14 blockchain, Rank of No. In January 2025, the protocol Press $ 33.4 billion on net depositsmore than the levels of 2021.
Justlend ranked a distant No. 2 on TVL with $ 3.5 billion locked.
The total amount-locked in the defi lending protocol over time. Source: Delete
Defi has risen for several years, along with various companies who bet this crypto sector for the future. Uniswap Ethereum Layer-2, Unichainmatching defi users, while launched Kraken Its own Ethereum L2 called inklooking for market sharing in the same sector.
Related: A proposal to PEG Ethena’s USDE in USDT Sparks Community Pushback
The lending protocols serve a particular function, which allows loans in the form of crypto between different users in a peer-to-peer format. It allows lenders to customize the terms of their loans, loans and even interest rates.
Different defi protocols begin to engage in purchases to increase investor confidence and allow stakeholders to share income. In December 2024, the ether.fi stood Buybacks for ethfi stakersAnd in February 2025, it was announced that Jupiter, a defi exchange in Solana, was expected to Buy back $ 100 million in tokens annually -TaonCreating demand.
Magazine: Defi and Ethereum are the ‘New Narrative’: Michaël Van de Poppe, X Hall of Flame
