Trading fees should change token supply 🔥
Following $UNI and $AAVE taught me to look beyond whether a protocol earns fees, and I want to know what those fees actually do once they enter the system.
Trading activity can grow while the token remains completely disconnected from it, which weakens the reason to hold the asset as the product expands.
For me, the more interesting model is one where product use creates fees and part of that value changes the token’s supply.
Aevo does this through its monthly buyback and burn program.
In October, another 1m AEVO was bought back using exchange trading fees and permanently burned.
That brought the total removed through AGP-3 and the monthly program to 78m AEVO.
That is 7.8% of the original supply ⚡️
#Altcoin Season#
Following $UNI and $AAVE taught me to look beyond whether a protocol earns fees, and I want to know what those fees actually do once they enter the system.
Trading activity can grow while the token remains completely disconnected from it, which weakens the reason to hold the asset as the product expands.
For me, the more interesting model is one where product use creates fees and part of that value changes the token’s supply.
Aevo does this through its monthly buyback and burn program.
In October, another 1m AEVO was bought back using exchange trading fees and permanently burned.
That brought the total removed through AGP-3 and the monthly program to 78m AEVO.
That is 7.8% of the original supply ⚡️
#Altcoin Season#