- Aave protocol is now governed by the DeFi community.
- They can now propose and vote for changes on the platform.
It’s now official. The core developers of Aave protocol, popular decentralized finance (DeFi) lending and borrowing platform, are no longer in control of the platform. Aave’s administration key has been handed over to the governance community, which is powered by the AAVE token. Perhaps, Aave developers are the latest to relinquish their control of the platform for the DeFi community.
Aave protocol walks to decentralization
According to the information, the Aave protocol has been sailing under the development team’s complete control since its launch in January 2020. During these times, the development team was preparing the protocol for this remarkable event. They worked to instill a secure environment for the many Aave users and launch new functions to expand the protocol’s usability.
By transferring Aave’s administration to the governance community, the developers remarked that it’s an important move to their journey of decentralization. “Aave is more decentralized than ever,” said the CEO and founder of Aave, Stani Kulechov. He further explained that migrating the protocol’s control to the decentralized finance community is a remarkable event.
Basically, AAVE token holders have the right to propose and vote on Aave Improvement Proposal (AIP). Also, the Aave protocol governance community can earn a portion of the platform’s fee by staking their tokens. Reportedly, the maximum supply for the AAVE token is fixed at 16 million, and the community can redeem only 13 million of the token. The other three million AAVE goes to an “ecosystem reserve.”
At the time of writing, the Aave protocol token is trading at $32.67 on CoinGecko, and it’s ranked as the 46th largest digital currency. The protocol itself is the fifth largest in DeFi Pulse, with nearly $1 billion in digital assets locked.