Governance

Aave Governance V2 is an exciting new evolution of on-chain governance, allowing unique features, rapid protocol upgrades via short time lock executors, and governance upgrades via long time lock executors.

This ensures the protocol can rapidly adjust to changing market conditions, as well as upgrade core parts of the protocol as time goes on.

Governance Power

AAVE and/or stkAAVE token holders receive governance powers proportionally to the sum of their balance.

There are initially two powers associated with each governance token:

• The proposal power that gives access to creating and sustaining a proposal.

• The voting power which is used to vote for or against existing proposals.

Governance Proposals

The steps for a successful governance proposal are:

• Create an Aave Request for Comments (ARC) to share on the forum and exchange with the community.

• Use the Aave Snapshot to gauge community sentiment and preferences.

• Prepare the Aave Improvement Proposal (AIP) based on the rough consensus gathered via snapshot and prepare the necessary payloads.

• Submit the AIP to the protocol for a governance vote.

If successful, the AIP's payload will be automatically executed and implemented.

For more details, see here