ACI recommends that the Aave DAO propose to close underperforming L2s and promote reforms to the fork framework and performance incentives linked to KPIs.

PANews reported on September 17 that the Aave governance advocacy organization ACI released a status report on the Aave DAO, stating that currently more than half of Aave's cross L2 and L1 copy instances are economically unfeasible. According to data from the beginning of the year to date, over 86.6% of Aave's revenue comes from the Mainnet, with a proposal to close poorly performing L2 instances set to be released soon. Additionally, ACI recommends promoting reforms to the fork framework, prohibiting value dilution caused by third-party forks like Spark; and suggests implementing performance incentives linked to KPIs. Due to narrowed profit margins in lending operations, ACI stated it will vigorously promote the development of the stablecoin GHO. ACI recommends that the DAO maintain AAVE buybacks ($500,000 - $1 million/week) over the next 18 months and utilize over $100 million in reserve funds for growth and distribution partnerships, and to further unleash "firepower" through GHO credit lines (using BTC/ETH/AAVE as collateral). ACI is about to present its growth investment principle framework to the DAO.