$AAVE Disassembly: Where does the money come from, where is it burned, and why is it worth money?
【Emission Mechanism】In 2020, the project migrated to the mainnet, with a hard cap of 16 million total supply (nearly fully released, with no new issuance).
【Profit / Value Sources】Governance token of a maximally decentralized lending protocol; security module + partial protocol fee buyback mechanism.
【Burn Mechanism】A portion of protocol fees is used for buybacks/burns (e.g., mechanisms like the security module).
【Core Model】A DeFi lending protocol governance token—no company, community governance.
One-sentence framing: “Equity” in a decentralized bank; bullish = on-chain credit demand is a necessity; bearish = liquidation/repayment run risk + regulatory risk around lending.
(The above is educational about the mechanics, not investment advice; DYOR)
【Emission Mechanism】In 2020, the project migrated to the mainnet, with a hard cap of 16 million total supply (nearly fully released, with no new issuance).
【Profit / Value Sources】Governance token of a maximally decentralized lending protocol; security module + partial protocol fee buyback mechanism.
【Burn Mechanism】A portion of protocol fees is used for buybacks/burns (e.g., mechanisms like the security module).
【Core Model】A DeFi lending protocol governance token—no company, community governance.
One-sentence framing: “Equity” in a decentralized bank; bullish = on-chain credit demand is a necessity; bearish = liquidation/repayment run risk + regulatory risk around lending.
(The above is educational about the mechanics, not investment advice; DYOR)