Lending protocol circle recently experienced a wave of internal governance turmoil. In December last year, token holders and the development team clashed fiercely on the governance platform, with the core dispute over front-end fees and the profits from new products—who should get what. The community believed that the team was pocketing all these funds, leaving the DAO treasury empty, leading to intense opposition between the two sides. At that time, a proposal was made to regain control of the brand, but 55% of voters opposed it, causing the token price to drop by 10% that day.
Seeing the potential for this issue to cause long-term community division, the founder suddenly proposed a new plan on January 3rd—"External Protocol Revenue Sharing." His idea was this: any high-value products developed by the development team that are not directly related to the core protocol, and generate profits, should be shared with token holders. Especially for the real-world asset market worth $5 million, the institutional-grade services generating revenue should also give AAVE holders a share.
This shift is quite interesting—moving from exclusive team control to profit sharing, effectively returning the protocol's cash flow. This approach actually touches on a common pain point in many DeFi projects: how to distribute value-added service profits to balance team incentives and community interests. How this event concludes may serve as a reference for other protocols.
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Degen4Breakfast
· 22h ago
Ah, it's that old trick of "monopolize first, share later" again. The voting rights are still in the team's hands, aren't they?
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All-InQueen
· 01-06 01:41
Another show of "everyone's money," politely called sharing, but it's really just being forced...
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MEVHunter_9000
· 01-05 23:37
Hey, finally the profit-sharing has started. I really couldn't hold back before. The team is quietly making money, with the DAO treasury close at hand.
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YieldFarmRefugee
· 01-04 04:35
Tsk, finally willing to share the cake? Why didn't you do it earlier?
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SchrodingerAirdrop
· 01-03 06:55
Haha, finally willing to share the cake? Why didn't you do it earlier?
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MevHunter
· 01-03 06:53
It's another drama of "Where's our money," finally with a conscience to share the pie? First, see if this off-protocol revenue sharing can really be implemented, and don't give another empty check.
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55% opposition and still could drop by 10%, indicating the market doesn't believe in this at all. Now suddenly proposing profit sharing to whitewash is just strange.
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Just want to know if the team will find an excuse to deduct from the distribution again in this 5 million RWA market. It would be pointless then.
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DeFi projects are all like this; only when something goes wrong do they remember the DAO treasury. Why didn't they do this earlier? Can they do it properly when it's time to give?
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It's interesting; at least someone dares to return cash flow to the holders. But if it turns into just a paper agreement again, it would be funny.
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FlyingLeek
· 01-03 06:53
Oh, finally willing to share the cake? I feel like it's a bit late.
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Token_Sherpa
· 01-03 06:34
honestly this is just ponzinomics with extra steps. they bleed the treasury dry, holders revolt, then suddenly "shared revenue" becomes the bandaid. classic damage control dressed up as tokenomics innovation lol
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LowCapGemHunter
· 01-03 06:33
Haha, that's what I mean. Token holders need to make some noise to split the cake.
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MeltdownSurvivalist
· 01-03 06:27
Another governance drama, I told you the team would eventually have to bow down.
Lending protocol circle recently experienced a wave of internal governance turmoil. In December last year, token holders and the development team clashed fiercely on the governance platform, with the core dispute over front-end fees and the profits from new products—who should get what. The community believed that the team was pocketing all these funds, leaving the DAO treasury empty, leading to intense opposition between the two sides. At that time, a proposal was made to regain control of the brand, but 55% of voters opposed it, causing the token price to drop by 10% that day.
Seeing the potential for this issue to cause long-term community division, the founder suddenly proposed a new plan on January 3rd—"External Protocol Revenue Sharing." His idea was this: any high-value products developed by the development team that are not directly related to the core protocol, and generate profits, should be shared with token holders. Especially for the real-world asset market worth $5 million, the institutional-grade services generating revenue should also give AAVE holders a share.
This shift is quite interesting—moving from exclusive team control to profit sharing, effectively returning the protocol's cash flow. This approach actually touches on a common pain point in many DeFi projects: how to distribute value-added service profits to balance team incentives and community interests. How this event concludes may serve as a reference for other protocols.