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Opinion: Interpreting the WLFI token distribution as Aave's intrinsic value is not accurate, and the 7% token distribution clause overvalues it.
BlockBeats News, August 24th. Mindao, founder of the DeFi protocol dForce, expressed his views on the "Can Aave Obtain 7% of WLFI Token Total Supply" event, stating that Aave's previous 10% revenue sharing partnership with Spark pales in comparison to the "20% revenue sharing + 7% token allocation" terms of the Aave and WLFI partnership, which are overly generous and do not align with the deal terms the Trump family is willing to accept. The WLFI project is endorsed by the Trump brand and, coupled with the upcoming US crypto new policy, WLFI will be issued at USD1. The narrative of WLFI will transition directly from "crypto bank" to a combination of "Aave + Circle," significantly increasing its valuation.
Aave founder Stani.eth made a high-profile retweet yesterday, stating that "at the current price, Aave's treasury will receive WLFI worth $2.5 billion, making it one of the biggest winners in this round cycle." He referred to this as the art of the deal, following which AAVE surged to touch $385. Mindao stated that some users consider the WLFI token allocation as part of Aave's intrinsic value. However, this judgment is inaccurate as neither proposal mentioned that WLFI would allocate token distribution to Aave's treasury; it is primarily used for liquidity mining incentives, and AAVE token holders will not directly receive the allocation. It is expected that the subsequent developments of the event will lead to WLFI completely abandoning Aave and causing the contract to become obsolete naturally. Alternatively, there may be a significant reduction in the WLFI token distribution share, with the allocation being used to incentivize the minting of USD1 loans as a targeted stablecoin minting operation subsidy.
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