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    How Much Influence Do Whales Have on Aave Governance?: Flipside Crypto

    By staff
    How Much Influence Do Whales Have on Aave Governanc Flipside Crypto 1

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    Aave’s governance underwent a transformation in December 2020 with the introduction of v2. Over 200 proposals have been submitted since its official debut.

    Aave’s governance workings and the extent of influence held by whales are pivotal questions. Understanding the dynamics of governance and the impact of powerful entities is crucial.

    Two Aave data dashboards, contributed by @jp12__ and @Ndhung1104, provide insights to address these questions. Explore the data for comprehensive answers.

    Let’s explore further.

     

    How Does Aave Governance Work?

    We will commence by scrutinizing the Aave Governance v2 procedure, introduced in December last year,  this submission from @jp12__. Notably, this v2 process superseded v1, where solely the Aave Genesis Team could propose Aave Improvement Proposals (AIPs).

    Under the v2 governance, submitting a proposal involves users creating a Request for Comment (ARC), outlining the proposal and sharing it with the community. Following Snapshot polls, the ARC transforms into an Aave Improvement Proposal (AIP) for voting.

    According to @jp12__, over 240 Request for Comment (ARC) submissions have been presented to the community. A majority of these focus on Aave governance or the introduction of new assets.
    Up to this point, 36 Request for Comment (ARC) submissions have evolved into Aave Improvement Proposals (AIPs). Among them, six have been successfully implemented, two are in progress, and the majority, totaling 28, are still under consideration, as reported by @jp12__.

    The Most influential Voters on Aave

    Moving on to the insights provided by @Ndhung1104 on Aave voters, the analysis aimed to identify the most significant and influential voters on the platform.
    Here are the top five addresses ranked by delegated voting power, and for a more extensive list can be found here.

    The influence of these prominent voters is substantial. @Ndhung1104 notes that most proposals require between 300k-400k AAVE of voting power to pass an AIP without objection. With the combined voting power of the top five addresses mentioned earlier, a proposal would amass approximately 420k voting power, surpassing the threshold needed for successful passage.

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