In today's decentralized finance (DeFi) world, the AAVE token plays an indispensable role as an important governance token. This article will delve into Aave's governance process, participant roles, and the rules and values behind it, to help readers better understand how to participate in this ecosystem.
Governance role
Within Aave's governance structure, there are four key roles, each with its own unique responsibilities and functions.
Aave Guardians: Aave Guardians are a group of individuals or entities elected by the community. Their main responsibilities include:
Protecting the Aave protocol: They have the ability to “veto” any proposal deemed malicious.
Market upgrade: After the governance vote is passed, the upgrade of the V3 market is allowed and the cross-chain governance module is implemented on the chain.
Emergency Action: As a safety net, Aave Guardians can suspend the Aave Market to prevent potential risks.
Delegates
Delegates are members who receive voting rights from other community members or through self-delegation. Currently, Delegates do not receive compensation from Aave.
Delegators Delegators are community members who hold AAVE or stkAAVE and grant their voting rights to others. Delegated persons are called Delegates.
Contributors Contributors are community members who participate in the Aave DAO and are committed to its development. They participate by joining working groups, completing bonus tasks, or building on the Aave protocol, and work toward a common goal.
Rules and Values: Aave’s governance does not have a formal code of conduct, but the DAO has a set of policies that serve as governance-defined rules that control specific aspects of the protocol or various markets.
Agreement policy
These policies govern the overall behavior of the protocol and entities participating in the Aave ecosystem, covering aspects such as security, economics, and expansion.
Market Policy: Market policies are market-specific and aim to impose security measures to protect the Aave protocol from cross-market contagion and ensure the stability of the entire protocol.
To learn more about Aave's policies, please refer to the Aave official website.
Governance Process: The following is an overview of the official process for participating in the Aave DAO, applicable to AAVE or stkAAVE holders and contributors.
discuss
Most governance activities begin with discussions among community members. These discussions provide the basis for developing proposals and help build consensus.
Proposals: Community members can propose specific proposals based on the results of the discussion, which will be evaluated and voted on during the governance process.
Working Groups: In order to effectively advance specific issues, community members can form working groups to focus on specific projects or issues and make suggestions.
Funding: In some cases, Aave DAO provides financial support to promote specific projects, which is critical to driving the development of the ecosystem.
Voting: All proposals will enter the voting stage, and members holding AAVE or stkAAVE can vote according to their own opinions. This process ensures that every member’s voice is heard.
Proposal Discussion and History: During the governance process, proposal discussions and history will be recorded for future reference, which helps build transparency and trust.
Governance Changes: As Aave evolves, governance roles and processes may change. Community members need to stay tuned to stay up to date on the latest governance developments and ways to participate.
in conclusion
The AAVE token is not only a financial instrument, but also an important part of the governance of the Aave ecosystem. By understanding governance roles, rules and participation processes, community members can participate in the development of Aave more effectively and promote the progress of decentralized finance. As Aave continues to grow, community involvement will be key to its success.