Cryptocurrencies

Aave Transfers Its Governance To Token Holders! – Cryptocurrencies

A DeFi protocol without a governance token is a bit like a democratic country with a single presidential candidate.

Aave launches its AAVE governance token – it was time ? On the menu: steak or rather staking to generate passive income for token holders who play the game.

LEND becomes AAVE

Aave is the last DeFi protocol to have announced the creation of governance tokens.

As of October 29, 2020, holders of utility tokens LEND will obtain governance rights after the transfer of protocol administration keys by major developers.

Aave token governance

Source : Aave official website

The team said in a statement that this is a historic moment and an important step towards decentralization.

The community voted in favor of an Improvement Proposal (AIP) that supported the token migration LEND to the governance token AAVE, in a 100: 1 ratio.

The total supply of AAVE is set at 16 million tokens, of which 13 million are exchangeable via tokens LEND ; the remainder, ie 3 million, is allocated to a reserve fund.

Ave AAVE, those who are going to staker greet you!

Tokens AAVE can be staked, which allows their holders to collect a percentage of the transaction fees.

The pair AAVE / ETH can also be staked on the protocol Balancer (BAL) for remuneration in tokens BALL in addition to transaction fees.

The AAVE stakes or stored on cold wallets can be used to vote.

The protocol was born earlier this year and is one of the most important DeFi projects in the cryptosphere.

He is one of the first to popularize “flash loans”. Aave is currently the 5th DeFi project on the market with a Total Value Locked (TVL) of $ 980 million – he was the DeFi champion a few months ago.

The protocol was not spared by the slowdown observed in the sector and has recorded a decrease in its TVL of 42% since August 2020.

Pub

Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.

The first vote on Uniswap (UNI) caused some tension and disappointment. It just goes to show that democracy on DeFi is not easy, but it is a challenge it must take up. We wait to see success – or failure – of this process which is a further step towards the decentralization of Aave. Sharing power: it can weaken or make more powerful a State, a DeFi protocol.

Tags

Related Articles

Back to top button
Close
Close