On March 4, Marc Zeller, the founder of the Aave Chan Initiative, presented a proposal for changes in Aave's revenue distribution and security systems.
Innovations in AAVE Revenue Distribution
According to the proposal, while the existing GHO staker distribution model continues, a new token named Anti-GHO will be launched. The cash reserves within Aave’s decentralized organization are sufficient to support both the existing program and the production of the new token.
Security System and Token Buyback Plan
The new security module, named “Umbrella,” aims to protect users against the risk of bad debts. This system operates on a specific liquidity commitment, thereby enhancing the protocol’s resilience. Additionally, the proposal outlines plans for the periodic buyback and distribution of AAVE tokens, with an increase in Aave DAO's cash reserves.
Bold Changes for Aave's Future
Marc Zeller describes the proposal as “the most important.” The plan includes actions to buy back AAVE tokens from the markets and transfer them to ecosystem reserves. The financial service provider TokenLogic will determine expenditures according to the protocol’s budget, aiming to boost investor confidence.
The proposed changes could allow the Aave protocol to adopt a different approach to financing and liquidity management, potentially introducing innovations in the DeFi sector.
