AaveToken (AAVE) Tokenomics
AaveToken (AAVE) Information
Aave is a decentralized finance protocol that allows people to lend and borrow crypto.
AaveToken (AAVE) Tokenomics & Price Analysis
Explore key tokenomics and price data for AaveToken (AAVE), including market cap, supply details, FDV, and price history. Understand the token's current value and market position at a glance.
In-Depth Token Structure of AaveToken (AAVE)
Dive deeper into how AAVE tokens are issued, allocated, and unlocked. This section highlights key aspects of the token's economic structure: utility, incentives, and vesting.
Aave is a decentralized liquidity protocol, and its native token (AAVE) underpins governance, incentives, and risk management. Below is a comprehensive breakdown of its token economics, including issuance, allocation, usage, incentives, locking, and unlocking mechanisms.
Issuance Mechanism
- Initial Minting: The AAVE token was created through a migration from the LEND token, with a fixed supply minted at genesis.
- Ecosystem Reserve: 3,000,000 AAVE tokens were minted for the Ecosystem Reserve during the migration from LEND to AAVE.
Allocation Mechanism
The initial allocation of AAVE tokens was distributed across several categories, each with specific unlocking schedules:
| Allocation Recipient | Allocation Description | Unlocking Mechanism |
|---|---|---|
| Core Development | 20% unlocked at genesis, then 20% every six months | |
| User Experience Development | 20% unlocked at genesis, then 20% every six months | |
| Management & Legal | 20% unlocked at genesis, then 20% every six months | |
| Unexpected Costs | 20% unlocked at genesis, then 20% every six months | |
| Promotions & Marketing | 20% unlocked at genesis, then 20% every six months | |
| Public Sale | Fully unlocked at token genesis | |
| Ecosystem Reserve | 3,000,000 AAVE tokens minted at migration, fully unlocked |
Usage and Incentive Mechanism
AAVE tokens serve multiple purposes within the protocol:
- Governance: AAVE holders participate in protocol governance, voting on proposals and parameter changes.
- Incentives: The Aave DAO can allocate funds from the treasury to incentivize activities such as supplying or borrowing assets in liquidity pools. These incentives are distributed continuously and proportionally to user participation.
- Safety Module: AAVE can be staked in the Safety Module, which acts as an insurance fund to protect against protocol shortfalls. Stakers earn rewards for providing this security.
Incentive programs are proposed, discussed, and approved through the Aave governance process, ensuring community involvement and transparency.
Locking Mechanism
- Vesting/Cliff: Most allocations (except the public sale and ecosystem reserve) are subject to a vesting schedule, with 20% unlocked at genesis and the remainder released in 20% increments every six months.
- Safety Module Staking: Users can lock AAVE in the Safety Module to earn rewards and provide protocol security. Locked tokens are subject to a cooldown period before withdrawal.
Unlocking Time
- Public Sale: Fully unlocked at genesis.
- Other Allocations: 20% unlocked at genesis, then 20% every six months, resulting in full unlock over 2 years.
- Ecosystem Reserve: Fully unlocked at the time of migration.
Example Unlocking Table
| Allocation Recipient | Unlock Start Date | Unlocking Schedule | Amount Unlocked per Period |
|---|---|---|---|
| Core Development | 2017-12-10 | 20% at genesis, 20% every 6 months | 180,000 |
| User Experience Development | 2017-12-10 | 20% at genesis, 20% every 6 months | 120,000 |
| Management & Legal | 2017-12-10 | 20% at genesis, 20% every 6 months | 120,000 |
| Unexpected Costs | 2017-12-10 | 20% at genesis, 20% every 6 months | 60,000 |
| Promotions & Marketing | 2017-12-10 | 20% at genesis, 20% every 6 months | 120,000 |
| Public Sale | 2017-12-10 | Fully unlocked at genesis | 10,000,000 |
| Ecosystem Reserve | 2020-09-24 | Fully unlocked at migration | 3,000,000 |
Summary Table: Aave Tokenomics
| Mechanism | Details |
|---|---|
| Issuance | Fixed supply minted at genesis, with additional tokens for the Ecosystem Reserve |
| Allocation | Core Dev, UX Dev, Management & Legal, Unexpected Costs, Promotions, Public Sale, Reserve |
| Usage | Governance, protocol incentives, Safety Module staking |
| Incentives | Distributed via DAO proposals, liquidity mining, Safety Module rewards |
| Locking | Vesting for most allocations, staking in Safety Module |
| Unlocking | 20% at genesis, 20% every 6 months (except public sale and reserve, which are instant) |
Additional Notes
- Governance and Incentives: The Aave DAO, governed by AAVE holders, manages incentive programs and protocol upgrades.
- Staking Risks: Staked AAVE in the Safety Module is subject to slashing in the event of a protocol shortfall, aligning incentives for protocol security.
This structure ensures a balanced approach to distribution, incentivization, and long-term protocol sustainability.
AaveToken (AAVE) Tokenomics: Key Metrics Explained and Use Cases
Understanding the tokenomics of AaveToken (AAVE) is essential for analyzing its long-term value, sustainability, and potential.
Key Metrics and How They Are Calculated:
Total Supply:
The maximum number of AAVE tokens that have been or will ever be created.
Circulating Supply:
The number of tokens currently available on the market and in public hands.
Max Supply:
The hard cap on how many AAVE tokens can exist in total.
FDV (Fully Diluted Valuation):
Calculated as current price × max supply, giving a projection of total market cap if all tokens are in circulation.
Inflation Rate:
Reflects how fast new tokens are introduced, affecting scarcity and long-term price movement.
Why Do These Metrics Matter for Traders?
High circulating supply = greater liquidity.
Limited max supply + low inflation = potential for long-term price appreciation.
Transparent token distribution = better trust in the project and lower risk of centralized control.
High FDV with low current market cap = possible overvaluation signals.
Now that you understand AAVE's tokenomics, explore AAVE token's live price!
How to Buy AAVE
Interested in adding AaveToken (AAVE) to your portfolio? MEXC supports various methods to buy AAVE, including credit cards, bank transfers, and peer-to-peer trading. Whether you're a beginner or pro, MEXC makes crypto buying easy and secure.
AaveToken (AAVE) Price History
Analyzing the price history of AAVE helps users understand past market movements, key support/resistance levels, and volatility patterns. Whether you are tracking all-time highs or identifying trends, historical data is a crucial part of price prediction and technical analysis.
AAVE Price Prediction
Want to know where AAVE might be heading? Our AAVE price prediction page combines market sentiment, historical trends, and technical indicators to provide a forward-looking view.
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Disclaimer
Tokenomics data on this page is from third-party sources. MEXC does not guarantee its accuracy. Please conduct thorough research before investing.
Buy AaveToken (AAVE)
Amount
1 AAVE = 298.8 USD