The DeFi protocol accelerates the value accumulation of Token holders

Recently, several major DeFi protocols are actively exploring how to introduce value accumulation mechanisms for their native Tokens. This trend reflects the overall shift of the industry towards sustainable Token economics, with projects placing greater emphasis on real income distribution rather than inflationary incentives.

Major Economic Reform of Aave

Aave recently launched a significant Token economics reform, which mainly includes the following aspects:

buyback plan

• Launch a six-month buyback plan, investing 1 million dollars each week.
• The goal is to control Token emissions while strengthening the protocol treasury.
• The buyback fund pool may reach 100 million USD in six months.

New Financial and Governance Initiatives

• Establish the Aave Finance Committee (AFC), responsible for treasury fund management and liquidity strategies.
• Completed the transition from LEND Token, recovering 320,000 AAVE reserves.

Risk Management System Umbrella

• Launch the Umbrella system to optimize capital efficiency and reduce risks.
• Will be integrated into multiple blockchains, including Ethereum, Avalanche, etc.

New Reward Mechanism Anti-GHO

• Replace the old discount model for GHO holders
• Holding the Token can 1:1 burn to offset GHO debt or convert to StkGHO
• The incentive mechanism is directly linked to Aave's revenue.

Jupiter's Buyback Plan

Starting from February 17, 2025, Jupiter will use 50% of the protocol fees for the repurchase and locking of JUP Token for a period of three years. This initiative aims to reduce the circulating supply and enhance long-term stability.

• The first buyback purchased 48,800 JUP for $3.33 million.
• The total buyback exceeds 10 million JUP(, approximately 6 million USD )
• On an annual basis, the repurchase scale may exceed 35 million US dollars.

Hyperliquid's Token Economics

Token Allocation

• Total supply of 1 billion HYPE
• 31.0% airdrop to early users
• 38.888% reserved for future emissions and community rewards
• 23.8% team allocation, locked for 1 year

Revenue model and buyback mechanism

• Main sources of income: trading fees and HIP-1 auction fees
• 46% of perpetual contract fees are allocated to HLP holders
• 54% used to repurchase HYPE through Assistance Fund(AF)

dual deflationary mechanism

• Buyback: AF uses part of the income to repurchase HYPE Token
• Burn:

1. The trading fees for spot transactions priced in HYPE are directly burned.
2. All Gas fees of the future HyperEVM mainnet will be burned.

Staking Mechanism

• Launch of staking on December 30, 2024
• The current annualized yield is approximately 2.5%
• 30 million HYPE has been staked.

Ethena's Fee Switch Plan

Ethena Labs has entered the top five DeFi protocols by TVL, with an annual revenue exceeding $300 million. It is currently advancing the implementation of a fee switch to provide direct income-sharing opportunities for holders.

Key Metrics Progress

• USDe supply target: 6B ( target gap is only 9% )
• Total income: reached 330M USD, exceeded expectations.
• Exchange integration: No clear timeline yet.
• Reserve Fund: $61M supports 6.1 billion USDe
• The gap between sUSDe and sUSDS APY has narrowed due to the market downturn.

Future Outlook

Ethena will continue to focus on the growth of USDe supply, ensuring more exchange integrations, and monitoring market conditions. Once all conditions are met, ENA holders will begin to enjoy revenue sharing.

Summary

DeFi main protocols are accelerating the transformation towards value accumulation for token holders, making their tokens more valuable beyond speculation through buyback programs, fee switches, and new incentive structures. As the regulatory environment gradually improves and DeFi matures, those protocols that successfully align with community incentives will thrive.