AAVE Labs recently proposed an interesting direction—sharing the revenue generated outside the protocol directly with token holders. This revenue distribution model mainly has four common approaches in the DeFi ecosystem.

The first is direct token dividends, equivalent to earning by holding tokens; the second involves a buyback and burn approach, using revenue to buy back and destroy tokens, increasing the unit value; the third provides additional compensation to stakers to improve Staking APY; the last one is directly allocated from the DAO treasury, leaving it flexible for community governance.

From historical experience, proposals that can genuinely enhance the token's value expectations usually gain community approval. Referring to a similar governance process of a leading exchange DEX, once such proposals are implemented, they tend to cause a noticeable short-term price increase. This is also why similar proposals always receive widespread support.