The largest protocol of Defi, the Aave Decentralized Autonomous Organization (DAO), has officially approved a $ 1 million token initiative that will start on 9 April.
The proposal Secure 439,000 votes before, well above the required 320,000 quorum, while only 2,020 votes oppose it.
This step is part of a broader plan to strengthen Aave’s tokenomics and to coordinate long -term protocol stimuli.
In the meantime, the development coincides with a competitive fall in the market value of Aave. According to CryptoSlate’s Data, Token has fallen almost 21% in the last 24 hours and maintains around $ 120 from the moment of the press.
Given this, Marc Zeller, founder of the Aave Chan Initiative (ACI), said:
“Dao -Tugkoop will have 2.5% [AAVE’s token] deliver at the end of the year. “
First phase to start with $ 4 million allocation
The newly adopted proposal introduces various important updates in Aave’s financial management. It draws up the Aave Finance Committee (AFC), which will supervise the activities of the treasury and the implementation of the return.
The first phase grants the AFC access to $ 4 million in Aethusdt to finance about a month of Aave -tokenopkoop. However, the entire program is intended to reduce a maximum of $ 1 million in a weekly weekly six months.
With this phased approach, the protocol can conclude the implementation of the implementation of an updated Aave Swapper contract, which will automate future returns. It also enables the DAO to check and adjust the program based on performance and market conditions.
Safety are built into the structure. There will be no direct token transfers of the treasury and all expenses will remain within budgets that have been approved by Governance. This ensures transparency while timely execution is possible.
In the meantime, Zeller hinted that the timeline of six months could be extended.
He quoted earlier initiatives such as Merit, which was initially planned for six months, but had been running for more than a year. He noted that similar extensions are likely if the return turns out to be successful.
He stated:
“Buybacks are forever, the rate is exactly the one who voted for the DAO for the next 6 months to start slowly and in a conservative rate. Like Merit we have started 6 months and now we are celebrating the 16th month of the program, it is being renewed.”
