TL;DR
Full Story
AaveDAO is proposing ‘fee switches’, which is starting to look like a trend in the DAO space.
It’s like the crypto version of companies giving out Christmas bonuses.
Which sounds weird, so lettuce explain:
AaveDAO is a community-driven DAO (aka community owned organization) that loans out money for people to purchase cryptocurrency. What’s crazy here is that AaveDAO has net profits of $60M a year as of now.
(That’s a solid business!)
Which is where Fee Switching comes in:
All DAO’s collect fees in one way or another.
Fees are used to pay for administrative tasks, coding & development, or for other ‘business-expenses.’ But when all costs are met, and profits are rising – fees could also be used to bolster the DAO’s longevity.
For Instance: AaveDAO wants to reward its community for holding its token, which helps to stabilize price and sustain its economic health.
The upcoming proposal which (if voted through) would result in a chunk of fee revenue being re-distributed to those who hold the $AAVE token.
(The same way that, each Christmas, big companies take a chunk of yearly revenue and distribute it to the employees who helped generate it).
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