Aave's AAVE Surges 21% on Historic DAO Proposal

Aave (AAVE) Price Surges 21% Following Major DAO Proposal

The AAVE token has experienced a remarkable 21% price surge in just 24 hours following the announcement of what Aave DAO calls its “most important proposal in history.” This substantial jump significantly outpaced the broader crypto market, which saw only a 3.5% increase according to the CoinDesk 20 index.

Aave, one of the leading lending and borrowing platforms in decentralized finance, has been building its financial strength steadily over the past year. The platform’s cash reserves have more than doubled since mid-2024, growing by 115% to reach $115 million. This growth demonstrates the platform’s increasing popularity and adoption among crypto users.

The GHO stablecoin, Aave’s native dollar-pegged token, has also shown impressive growth. Its total supply has now reached $200 million, indicating strong user demand and trust in the Aave ecosystem. The stablecoin has become an important source of revenue for the platform.

Financial performance has been equally strong, with Aave reporting robust revenue numbers that have put the DAO in a position to share more of its success with token holders. This positive financial situation forms the foundation for the ambitious new proposal.

The announcement came from Marc “Billy” Zeller, a key figure in the Aave community, who shared the proposal on social media on March 4, 2025. “After half a decade of hard work, with the ACI, we’re proud to present the updated Aavenomics proposal to the Aave DAO,” Zeller stated in his post.

The proposal, dubbed the “Aavenomics update,” builds on an initial plan that was approved in August 2024. It outlines several ways to increase value for AAVE token holders and create more benefits for users of the platform.

One of the key components of the proposal is increased profit sharing for users who stake their AAVE tokens. Staking has been a popular way for token holders to earn passive income while helping secure the network, and this change would make it even more rewarding.

The proposal also introduces an innovative concept called Anti-GHO. This special token cannot be traded on exchanges but offers two valuable options for users: it can be burned to eliminate GHO debt