TL; DR
Full story
AaveDAO proposes ‘fee switches’, which is starting to look like a trend in the DAO space.
It’s like the crypto version of companies that give out Christmas bonuses.
That sounds strange, so Lettuce explains:
AaveDAO is a community-driven DAO (also called a community organization) that lends money to people to buy cryptocurrency. What’s crazy here is that as of now, AaveDAO has a net profit of $60 million per year.
(That’s a solid company!)
That’s where Fee Switching comes in:
All DAOs collect fees in some way.
Reimbursements are used to pay for administrative tasks, coding and development, or for other “business expenses.” But if all costs are covered and profits increase, fees can also be used to extend the life of the DAO.
For example: AaveDAO wants to reward its community for holding its token, which helps stabilize its price and maintain economic health.
The upcoming proposal that (if approved) would result in some of the fee revenue being redistributed to those who hold the $AAVE token.
(The same way that large corporations take a portion of their annual revenue every Christmas and distribute it to the employees who helped generate it).
