Aave tokenholders mull foray into Bitcoin mining
Aave's tokenholder community is considering entering Bitcoin mining to enhance revenues and promote the adoption of its GHO stablecoin. A proposal by Blockware Solutions suggests Aave would use Blockware to operate mining rigs, aiming for a 33.03% net annualized return for its treasury. The initiative could improve Aave's financial position and allow for capital gains tax strategies. The proposal includes integrating GHO into the Bitcoin network, enabling miners and customers to purchase mining equipment with GHO. However, there is skepticism among tokenholders regarding the profitability and costs associated with Bitcoin mining. Aave's GHO stablecoin, launched in July on the Arbitrum network, has seen limited adoption, with a market cap of approximately $166 million compared to Tether's nearly $140 billion. Bitcoin miners are increasing production despite reduced rewards from the April halving, with a focus on accumulating BTC. Integrating GHO could position it as a "Bitcoin-powered stablecoin."
