The upgrade of the Aave governance model is ready to be submitted to AAVE holders in the form of an AIP.

Vote for this AIP will start today (12/11/2020), if you want to participate, you’re invited to use the aave app UI :

Direct vote with the contracts is also available, please refers to the dedicated documentation :

AIP content in short

Implementation of the Aave Governance v2 smart contract
Implementation of voting delegation and proposal power delegation
Implementation of voting strategies with the inclusion of AAVE and StkAAVE
Addition of voting and proposition power delegations on AAVE and SktAAVE
Implementation of Executor entities
Implementation of the Guardian

For further understanding of the new mechanisms introduced in this proposal, please refer to the following diagram:

Relevant links

For more details on this AIP please refers to the associated ARC post : ARC: Activation of Aave Protocol Governance V2 17

Please also find the content of the AIP-4 on the Aave public Github repo :

github.com

aave/aip/blob/master/content/aips/AIP-4.md 25

---
aip: 4
title: Activation of Aave Protocol Governance V2
status: Proposed
author: Marc Zeller (@marczeller)
discussions: https://governance.aave.com/t/arc-activation-of-aave-protocol-governance-v2/1717
created: 2020-12-11
updated: 2020-12-11
---

## AIP rationale

Aave V2 governance is inspired by delegation-based governance models already on the market, while introducing 3 key innovations and a new layer of resilience:

The introduction of a new concept in DeFi governance - the **segregation between voting and proposition power** to increase control and ownership of voting rights for AAVE holders.
AAVE holders will have the choice between delegating proposal creation power to specialized actors while holding their voting rights; or even delegating them to another entity.

**Voting strategies** - The AAVE token exists and is used in the Aave ecosystem in a variety of ways. Through different voting strategies, AAVE in different forms can be used to vote and create proposals. In the initial implementation both AAVE and stkAAVE holders will have voting and proposal creation rights. Voting strategies can be upgraded at any time through a governance proposal to include other forms of AAVE (i.e. aAAVE, staked AAVE/ETH AMM shares, etc.)

**Multiple executor entities** - Different components of the ecosystem might have different needs for consensus and security. For example, changing the AAVE token logic itself might have a large impact on the ecosystem and is something that requires higher consensus than adjusting a risk management parameter. The Aave governance V2 splits the control of different entities within the Aave ecosystem between different executors with different execution delays (timelocks) and different consensus parameters. At the beginning there will be two different executors:

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AIP-4: Activation of Aave Protocol Governance V2

AIP content in short

Relevant links