The post AAVE Rallies 26% on Game-Changing Proposal for Aave Protocol appeared on BitcoinEthereumNews.com.

AAVE, the native token of the decentralized finance (DeFi) lending protocol Aave, has surged by more than 26% in the last 24 hours following the unveiling of a game-changing proposal by the Aave decentralized autonomous organization (DAO). Data from CoinMarketCap shows AAVE trading at $220 by the time of writing after a 26.6% surge within 24 hours. The cryptocurrency’s market cap is also up to $3.33 billion, while its 24-hour trading volume has more than doubled to $728.45 million. Aave’s “Most Important” Proposal On March 4, Aave Chan Initiative (ACI) founder Marc Zeller announced that the organization had presented an Aave Request For Comment (ARFC) titled Aavenomics Implementation: Part One. The proposal, considered the most important in the protocol’s history, contains updated Aavenomics for the DeFi lending platform and seeks community feedback. Aavenomics implementation: Part one builds on the [TEMP CHECK] Aavenomics update, which the community approved in August 2024. The TEMP CHECK proposed creating a clear path for Aave to redistribute net excess revenue to key ecosystem contributors. The new proposal aims to implement the first part of the Aavenomics presented in the TEMP CHECK, including the excess revenue redistribution, updating AAVE tokenomics, and managing the asset’s secondary liquidity protocol. In addition, Aave is looking to finalize the migration from LEND, its previous governance and utility token, to AAVE. Creating AFC And Managing Liquidity The first implementation of Aavenomics has six main focus points. The ACI is looking to form a four-member Aave Finance Committee (AFC) with a 3/4 signature threshold consisting of itself, the DeFi economic security systems provider Chaos Labs, the DeFi solutions provider Tokenlogic, and the DeFi risk management entity Llamarisk. The ARFC also proposes authorizing Tokenlogic to implement financing for the proposed budget for the first six months of Aavenomics. This will be made possible…

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Filed under: News - @ March 5, 2025 3:20 pm