# \[ARFC\] stkAAVE Emissions Update **URL:** \ **Category:** Governance\ **Created:** [May 20, 2026, 7:03pm UTC](https://governance.aave.com/t/arfc-stkaave-emissions-update/24945 "2026-05-20T19:03:18Z")\ **Posts on this page:** 3\ **Page:** 1
**Author:** ![TokenLogic](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/tokenlogic/32/8248_2.png) [@TokenLogic](https://governance.aave.com/u/TokenLogic)\ **Post date:** [May 20, 2026, 7:03pm UTC](https://governance.aave.com/t/arfc-stkaave-emissions-update/24945/1 "2026-05-20T19:03:18Z")
* * * title: [ARFC] stkAAVE Emissions Update author: @TokenLogic created: 2026-05-20 * * * # Summary This proposal restores stkAAVE emissions to reflect the targeted 2.75% staking APR, as mentioned in the [Aave DAO Funding Insights](https://governance.aave.com/t/aave-dao-funding-insights/24192). # Motivation ### Overview In line with the Aave DAO Funding Insights publication, this proposal recommends restoring AAVE emissions to target a 2.75% APR. Given that recent outflows are not expected to return, and with more than 30,000 stkAAVE balances currently in Cooldown, AAVE emissions should be revised downward to align with the 2.75% target rate. This publication follows the prudent decision to [pause the AAVE buyback program](https://governance.aave.com/t/arfc-pause-aave-buybacks/24686), facilitating the Aave DAO’s redirection of capital to strengthen the balance sheet after [donating 25,000 ETH](https://governance.aave.com/t/arfc-rseth-incident-funding-update/24740) to restore the backing of rsETH following the LayerZero exploit, and preparing to introduce an [incentive campaign on the Ink Network](https://governance.aave.com/t/direct-to-aip-april-2026-funding-update/24447) in the near future. ### Rationale for stkAAVE Emission Reduction To date in Q2, four (4) large stkAAVE holders have withdrawn AAVE from the staking contract, resulting in the APR adjusting from 2.68% to 3.87%. ![Screenshot 2026-05-20 at 20.02.10](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/b/bc78ad014858534c93e469200caa03044038f3b3.jpeg) Source: [https://aave.tokenlogic.xyz/umbrella/stkaave](https://aave.tokenlogic.xyz/umbrella/stkaave) ![image](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/a/ab2d22feed77590a3079e4b82dafad014372be8b.png) Source: [https://aave.tokenlogic.xyz/umbrella/stkaave](https://aave.tokenlogic.xyz/umbrella/stkaave) With an expected 32,593 AAVE to be withdrawn across four (4) addresses and slightly more than 35k AAVE currently in Cooldown, the yield is expected to increase towards 3.93% APR in the near future. ![image](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/9/9a67087067eecbfec341e17111ca14cdb71ec727.png) Source: [https://aave.tokenlogic.xyz/umbrella/stkaave](https://aave.tokenlogic.xyz/umbrella/stkaave) With reference to the [Aave DAO Funding Insights](https://governance.aave.com/t/aave-dao-funding-insights/24192) publication, this proposal seeks to reduce AAVE emissions to align with the targeted 2.75% APR. After adjusting for recent and forecast near-term stkAAVE withdrawals, an emission rate of 150 AAVE/day is anticipated to achieve the targeted 2.75% APR. Reducing the AAVE emissions by 70 AAVE/day continues the recent trend of revising stkAAVE emissions lower, as shown in the table below. ![image](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/b/b5fe03c249d58fa40d3d55c6c442ecdb49677615.png) Source: [https://aave.tokenlogic.xyz/umbrella/stkaave](https://aave.tokenlogic.xyz/umbrella/stkaave) The impact upon AAVE emissions is shown below: | Metric | Current | Proposed | Delta | | --- | --- | --- | --- | | Emission Rate (AAVE/day) | 220 | 150 | (70) | | Annualised Emissions (AAVE) | 80,300 | 54,750 | (25,550) | | Annualised Spend (At $90/AAVE) | ~$7.2M | ~$4.9M | ($2,299,500) | | stkAAVE APR | 3.30% | ~2.75% | (80) bps | # Specification The stkAAVE emission rate is to be updated as follows, with no other Safety Module parameters modified by this proposal. | Parameter | Current | Proposed | | --- | --- | --- | | stkAAVE Emission Rate | 220 AAVE/day | 150 AAVE/day | | stkAAVE Target APR | 3.30% | ~2.75% | The change aligns the cost of stkAAVE emissions with expected participation levels and reduces annualised stkAAVE emission spend by approximately $2,300,000 at $90/AAVE. # Disclaimer TokenLogic is an active service provider to the Aave DAO, the beneficiary of stream 100072 and the KPI as outlined in this [publication](https://governance.aave.com/t/arfc-service-provider-compensation-reform-for-v4-alignment/23246). The scope of this engagement is available via this forum [proposal](https://governance.aave.com/t/arfc-tokenlogic-phase-ii/23223). TokenLogic supports and maintains an independent [delegate voting platform](https://governance.aave.com/t/tokenlogic-delegate-platform/12516) within the Aave community. TokenLogic and associated entities have no undisclosed material conflicts of interest at the time of submission. # Next Steps 1. Gather feedback from the community. 2. If consensus is reached on this ARFC, escalate this proposal to the Snapshot stage. 3. If the snapshot outcome is YAE, escalate this proposal to the AIP stage. # Copyright Copyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/). ---
**Author:** ![Abel189](https://avatars.discourse-cdn.com/v4/letter/a/c67d28/32.png) [@Abel189](https://governance.aave.com/u/Abel189)\ **Post date:** [May 27, 2026, 7:58pm UTC](https://governance.aave.com/t/arfc-stkaave-emissions-update/24945/3 "2026-05-27T19:58:30Z")
I support this proposal. The reduction appears financially prudent given the recent outflows from stkAAVE and the DAO’s broader balance sheet priorities following the rsETH recovery efforts and upcoming ecosystem incentive programs. Targeting a sustainable staking APR instead of overpaying emissions makes sense, especially when participation levels have structurally changed. Reducing unnecessary dilution while preserving the Safety Module’s attractiveness is a healthy long-term approach. That said, the DAO should continue monitoring staking participation closely. If staking participation weakens materially or market conditions change, emissions may need to be revisited to ensure the Safety Module remains sufficiently capitalized and attractive relative to competing DeFi yield opportunities. Overall, this looks like a balanced treasury efficiency measure rather than a purely defensive cut. ---
**Author:** ![system](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/e/e11637c36f45ffa158f2146f5c19438d46e0824d.svg) [@system](https://governance.aave.com/u/system)\ **Post date:** [June 26, 2026, 7:59pm UTC](https://governance.aave.com/t/arfc-stkaave-emissions-update/24945/4 "2026-06-26T19:59:17Z")
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