Join Our Telegram channel to stay up to date on breaking news coverage
The Aave decentralized autonomous organization (DAO) has given the green light to a proposal that will allow Aave to reward members from Aave companies with $16.28 million in retroactive funding. The members will be rewarded for the role played in creating the Aave Protocol v3.
Aave DAO to use $16.3M to reward Aave community members
The Aave DAO is the company behind the Aave DeFi platform. The DAO has tabled a proposal where members from Aave companies will receive rewards with $16.28 million in retroactive funding. These members will be rewarded for their role in developing the Aave protocol.
The voting for this proposal is currently underway. Voting for the proposal commenced on Tuesday, and most votes are leaning toward the positive side. The votes received in favor have more than doubled the required vote. The vote is expected to end on September 8.
The initial proposal on the manner was first tabled on August 10. The Aave Request for Comment (ARC) seeks “retroactive funding” to work on developing the v3 protocol. The $16.28 million in rewards will comprise $15 million that involves the work done by the developers for over one year.
$1.28 million will go toward the costs made by third-party auditors. The money will go towards the members of Aave companies, which are behind one of the best DeFi exchanges, that have been working on supporting the growth of the firm.
Your capital is at risk.
The funding that will go towards the Aave protocol developers will comprise multiple tokens such as Aave (AAVE), Dai (DAI), Tether (USDT), USD Coin (USDC), and alternative stablecoins such as the Frax stablecoin. The funding will also go towards volatile assets like Synthetix because of the proposal’s passing.
The origin of the funds that go towards retroactive public goods funding models is still unclear. The model was made popular by the co-founder of Ethereum, Vitalik Buterin, and the Ethereum scaling solution, Optimism. The two parties made this model popular on July 21, 2021.
The Medium post said that the retroactive public goods funding model would offer developers an incentive to allow them to work on projects by supporting their payments after completion. The model can be based on the value that the project offers.
The main objective behind the concept is that it will make it easy to reach a consensus on the use and the non-useful things. Buterin said that the start of the project could be rough because of limited funding. New projects rely on donations and insufficient grant funds to incentivize developers.
Aave DAO records losses during the crypto winter
The Aave DAO has witnessed a notable drop in the value of liquid assets during the crypto winter, a notable drop from the more than $800 million reported in April. However, the community is showing support for the retroactive funding proposal.
The community members have said that Aave companies have done a remarkable job and that they should be paid for their efforts. However, not all community members believe in the proposal.
Some have expressed concerns over the lack of transparency in the proposal. According to one member, they supported the proposal but wished there was transparency, which could make the retroactive funding model increasingly popular. However, despite these concerns, the voting momentum shows the proposal will be passed.
Read more:
Join Our Telegram channel to stay up to date on breaking news coverage
