The fee switch will allow governance to control and adjust fee-related policies based on the platform’s needs and objectives.
A proposal may be in the works at the decentralized lending platform Aave (AAVE), deliberating the activation of a ‘fee switch’ to distribute fees to holders. This was shared by Aave Chan Initiative founder Marc Zeller on the X social platform.
Zeller said, “Temp check to activate ‘fee switch’ next week,” after noting that Aave decentralized autonomous organization (DAO)’s current net profits total about $60 million per year, reflecting five years of operational costs.
Aave is a crypto lending platform that runs on multiple blockchain networks. It allows borrowers to take out loans in one cryptocurrency while depositing another as collateral. It is governed by holders of the Aave token, who collectively form AaveDAO.
