DAOs Are Now Giving Out Christmas Bonuses (Kind of…Lettuce Explain)

TL;DR

• AaveDAO wants to start distributing a chunk of the $60M in fees its lending service generates each year, to those who hold the $AAVE token.

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).