Aave reveals how past grants have contributed to the network Why focusing on development is the right path for AAVE
Aave announced that the snapshot for a recent Aave Grants DAO renewal proposal has begun. If approved, the decentralized network could begin to spur more development to pursue long-term growth.
Read the price forecast of AAVE 2023-2024
The official announcement revealed that the proposal being voted on was the 4th proposal of its kind aimed at boosting development. The move came at a time when the market was experiencing a slowdown in the crypto market.
The crypto winter has significantly eroded confidence and usability in the segment, so the snapshot is of great importance to AAVE.
Snapshot voting is live for our proposal to renew Aave Grants DAO!
This is Aave Grants’ 4th proposal to drive development, attract the best contributors, and ensure Aave’s long-term growth by funding talented builders and cultivating Aave’s culture 👻https://t.co/ WLcG2TIgql
— AaveGrants.lens (@AaveGrants) January 7, 2023
Passing the proposal would allow Aave to focus more on the long-term future of the network. Since this is voting on extending grants, it might be a good idea to look at how past grants have been handled and whether they have benefited the network.
Aave Grants revealed that more than 122 grants have been awarded since the last proposal. The recipients of those grants focused on application and integration development, as well as education and community marketing. Some of those grants ended up in hackathon awards, so you can say they benefited the network.
Will Aave Grants DAO affect price performance in the short and long term?
A price impact in the short term is unlikely as there will be no direct correlation to demand. Nevertheless, it can have an impact, especially since it is strongly focused on facilitating development.
Aave managed to achieve healthy development activity over the last 12 months, but the same measure pointed to a significant decline over the past four weeks.
Source: Sentiment
Healthy development may prompt more investors to consider the state of the network. This could contribute to increased investor confidence, but this is only one aspect.
Investors should also consider other areas of growth that could contribute to long-term growth. Network growth, for example, is another area that has taken a huge hit from November to date.
Source: Sentiment
How many AAVEs can you get for $1?
The growth of AAVE’s tank network may be due to lower Web3 activity thanks to the bear market. A resurgence or pivot in network activity is likely to manifest when cryptocurrency demand recovers.
The above observation was also supported by the fact that transaction volume and daily active addresses have also decreased in recent weeks.
Source: Sentiment
Regardless of the market outcome in 2023, Aave’s decision to focus grants on network development could work to the benefit of investors in the long run. It will strengthen AAVE’s position if the market eventually recovers.
This post Will Aave’s long-term growth plans dampen investor expectations in the near term?
was published first on https://ambcrypto.com/will-aaves-long-term-growth-plans-dampen-short-term-investor-expectations/
