Supported by the community, the Aavenomics proposal is set to bring significant changes to AAVE's economic model.
Community Support and Aavenomics Significance
The Aavenomics proposal, introduced by ACI, has passed the quorum, allowing for the implementation of changes to Aave's tokenomics. According to founder Marc Zeller, the implementation could start as soon as this month. These changes involve implementing a revenue-sharing mechanism to share part of the protocol's income with participants. Those staking AAVE tokens will receive rewards through a buyback program.
Impact on AAVE Value
Despite the approval and expectations of price growth, AAVE's value continues to decline. Over the past year, the token has dropped 47% due to market trends putting pressure on altcoins. However, the $1 million weekly buyback will create consistent demand pressure, potentially affecting its price positively.
Long-term Prospects for AAVE
Aside from tokenomics proposals, Aave continues to grow with the launch of V3 on new blockchains. Despite current challenges, AAVE still appears promising due to past successes. A 37% rise last year and network expansion highlight its potential for further development. Positive changes and community support make it a candidate for growth post-market stabilization.
The Aavenomics proposal provides a new economic model that may positively affect AAVE in the future. However, market conditions remain a determining factor for short-term changes.
