Governance

Introduction

Aavenomics introduces a formalized path to the decentralisation and autonomy of the Aave Protocol. Covering governance mechanisms and financial incentives, it aims to share a vision of alignment between various stakeholders within the Aave ecosystem, protocol functionality and the AAVE token as a core securing element of the Aave Protocol. You can find all the details here.

What do I need to vote?

In order to vote you need to have AAVE tokens or stkAAVE (Staked AAVE) tokens. You can use both and the amount will be summed up in your voting.

How do I vote?

  1. Go to the "Governance" section in the app and select the relevant proposal.

  2. Read through the proposal and ensure you have full understanding what is being proposed.

    1. If you would like to discuss it, select the discussion link on the right hand side to be directed to the post on the governance forum.

  3. On the right hand side, select the vote you would like to cast.

  4. Confirm your vote.

  5. Congratulations, you have now voted!

For your vote to be valid, your balance of voting tokens must be the same or greater throughout the entire proposal voting and validating period.

How do I change my vote?

You can easily change your vote by following the steps above and casting your desired vote. Your previous vote will automatically be cancelled.

Can I move my AAVE while the vote is in progress?

You can move your tokens as long as the amount you have in the wallet used to vote remains equal or higher than the tokens used to vote. Reducing your token amount to lower than the amount of tokens used for voting would cancel your vote.

Can I add more tokens to my vote?

Yes, voting again will reflect your new amount of tokens.

How does voting work?

See the 'From Idea to Implementation to Execution' post on the Governance forum.

For a more technical explanation, see the Governance section of the Developer Docs.

What is the voting threshold?

The threshold is dynamic and can change based on the quorum + differential of votes for/against an AIP.

If there are very few votes against an AIP, the threshold will remain the same. However, if the votes against the AIP are more substantial, then the threshold can be moved up so there must be more votes in favour for the AIP to pass. This is to ensure that an AIP has overwhelming approval before its implemented.

For example:

  1. If the quorum is 20%, the differential is 15% and 2% of the total votes are against the AIP, the threshold would remain at 20% (because 15+2 = 17 < 20).

  2. If the quorum is 20%, the differential is 15% and 6% of the total votes are against the AIP, then the threshold would be raised to 21% (because 15+6=21), so more "yae" votes would be required for the AIP to pass.