Merit, Aave’s new reward program, goes live today. Set to launch at 18:00 UTC, the pioneering airdrop system introduced by Aave Chan Initiative is aimed at rewarding Aave’s most loyal users.
Merit is designed to elevate Aave's appeal and operational efficiency. This is achieved through a reward mechanism prioritizing DAO-beneficial actions and paid directly from Aave revenue without relying on artificial incentive methods.
Today's launch marks the distribution of 280 WETH to WETH borrowers. An airdrop to GHO borrowers and stakers is scheduled for next week. Snapshots for inclusion in later airdrops have not yet been taken.
Users will be able to claim their airdrop at https://www.aavechan.com/claim
Merit has already seen significant success, with around 200k ETH migrated from other protocols into Aave. The "Merit" system utilizes a booster-based model to reward specific user actions, dictating a weekly WETH and GHO airdrop.
The Merit program is strictly additive for Aave users who will continue to keep the same rates and parameters when using the Aave protocol. Merit boosters and diluters are incorporated to tailor WETH and GHO distributions based on a user’s alignment with Aave. Actions aligning with Aave's strategic objectives will be rewarded. Merit boosters enhance rewards for specific behaviors such as staking AAVE, active participation in governance, being a first-degree user, and more. Conversely, Merit diluters will reduce rewards.
Marc Zeller, founder of the ACI, said: “This is just the beginning of our journey to incentivize Aave-aligned user behaviors and foster a community dedicated to the protocol's long-term success. This is also the first day of the sustainable “Real Yield” era of Aave, distributing protocol net profits to key actors of the Aave ecosystem”
Aave DAO has approved $2.1 million in ETH and 2.9m GHO for the initial 90-day Merit program. As the program progresses, Merit intends to become a permanent fixture, with plans for annual budgets exceeding $20 million. An extension proposal is slated for presentation to the DAO in April. Merit Round 2 and 3 are scheduled 45 and 90 days from now.
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