Ethereum News Today: Silo Finance Shifts Revenue Model to Direct USDC and ETH Payouts After 97% Community Approval

Generated by AI AgentCoin World
Monday, Aug 25, 2025 7:49 am ET1min read
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Aime RobotAime Summary

- Silo Finance transitions to direct USDC/ETH payouts for xSILO holders after 96.98% community approval of a new revenue-sharing model.

- The 90-day pilot allocates 50% of protocol revenue directly to token holders, replacing prior buyback mechanisms with stablecoin and crypto options.

- The shift aims to enhance transparency and align incentives, potentially boosting DeFi engagement through predictable returns and controlled experimentation.

- While SILO's price dipped 4%, the model's long-term success could influence DeFi tokenomics by prioritizing community-driven governance and value distribution.

Silo Finance has implemented a major update to its revenue-sharing model, with overwhelming community support for transitioning from a buyback and distribution structure to direct payouts in

USDC
and
Ethereum
. The governance vote, conducted over four days, concluded with 21.1 million votes (96.98%) in favor of USDC, 411,000 (1.89%) for Ethereum, and just 248,000 (1.14%) supporting the continuation of the existing model. No votes were abstained, reflecting a clear consensus among xSILO holders [1].

Under the new framework, Silo Finance will distribute 50% of its protocol revenue directly to xSILO holders in either USDC or ETH. This is a departure from the previous model, in which revenue was used to repurchase SILO tokens before redistribution. The updated mechanism is intended to provide more transparent and predictable returns, with USDC offering a stable, dollar-pegged reward and ETH reflecting a desire for exposure to a potentially appreciating asset [1].

The transition will be piloted over a 90-day period, beginning on September 1, allowing the community to assess the model’s effectiveness before a potential permanent adoption. This structured rollout emphasizes the project’s commitment to testing new mechanisms in a controlled environment before broader implementation [1].

The SILO token has seen a 4% drop on the daily chart, trading at $0.02170 as of the latest data. Broader market trends and profit-taking have contributed to the decline, with technical indicators suggesting further downward pressure before a possible recovery. However, the new revenue model may serve as a long-term catalyst for increased protocol engagement. The stability of USDC-based payouts could attract more stakers to xSILO, potentially enhancing network activity and the overall utility of the protocol [1].

The move reflects a growing trend in decentralized finance (DeFi) to refine tokenomics and align incentives between protocol growth and token holders. By prioritizing direct revenue distribution, Silo Finance aims to increase transparency and fairness in value allocation. If successful, this approach could influence similar initiatives across the DeFi sector, reinforcing the importance of community-driven governance in shaping the future of decentralized platforms [1].

Silo Finance’s new model is part of a broader evolution in crypto governance and token economics, with the pilot offering a testbed for sustainable, long-term value distribution. The outcome will be closely watched by investors and developers interested in the future of DeFi structures [1].

Source: [1] Silo Finance approves new revenue-sharing model for SILO holders to earn in USDC, ETH – Invezz (https://invezz.com/news/2025/08/25/silo-finance-approves-new-revenue-sharing-model-for-silo-holders-to-earn-in-usdc-eth/)