ACI recommends Aave DAO to close underperforming Layer 2 and promote reform of the forked framework and links between performance incentives and KPIs.

According to Coinjie.com, the Aave Governance Initiative (ACI), an advocacy organization for Aave Governance, released a report on the status of Aave DAO, pointing out that more than half of Aave’s cross-layer Layer 2 and Layer 1 copy instances are economically unfeasible. According to year-to-date data, more than 86.6% of Aave’s revenue comes from the mainnet. ACI recommends closing down poorly performed Layer 2 and will release a proposal soon. In addition, ACI recommends reforming the forking framework to prohibit value dilution caused by third-party forking, such as Spark, and adopt performance-based incentives related to KPIs. As profit margins in the lending business continue to shrink, ACI said it will vigorously promote the development of GHO stablecoin. It recommends that DAO maintain AAVE buybacks ($500,000 to $1,000,000 per week) over the next 18 months, leverage more than $100 million in reserves for growth and distribution partnerships, and further unlock its potential through GHO credit lines (sanctioned by BTC, ETH and AAVE). ACI will soon submit its framework for growth investment principles to DAO.