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The DAO behind decentralized finance (DeFi) platform Aave has accepted an offer to provide $16.28 million in retroactive funding to members of Aave Companies for their roles in the development of the Aave protocol V3.
Voting on the proposal opened on September 6th, and as of this writing, there have already been over 667,000 votes in favor of funding, more than double the 320,000 votes needed. Voting will close on September 8th.
According to the original proposal, first submitted on August 10th, the Aave Request for Comment (ARC) was seeking “retroactive funding” for development work on the V3 protocol.
The $16.28 million consists of $15 million for work done by developers over a year and $1.28 million for expenses paid to a third party auditor. This money will be given to members of the company behind Aave Companies, a popular DeFi protocol.
Funding will consist of a mix of AAVE tokens, Dai (DAI), Tether (USDT), USD Coin (USDC), alternative stable assets (e.g. Frax stablecoin), and high volatility assets (e.g. Synthetix) . suggestion.
Although the origins of the retrospective public goods financing model are unclear, Popular Following a joint post on Medium by Vitalik Buterin and Ethereum scaling solutions company Optimism on July 21, 2021.
This post states that the retroactive public good financing model provides an incentive for developers to work on projects by allowing them to be paid after the project is completed, and that it provides He argued that it could be based on value.
The core principle behind this concept is that “it’s easier to agree on what worked than what worked.”
In his post, Vitalik suggests that in the early stages of the project, there may not be enough donations and grants to incentivize developers, making it difficult to get the project off the ground.
According to blockchain data provider Nansen, the value of Aave DAO’s liquid assets has dropped significantly from over $800 million in April to around $378 million at the time of writing.
Nevertheless, the community, along with community members, voted in favor of the retroactive funding request. suggest Aave Companies have done a great job and should be paid for it.
However, some community members took issue with the lack of transparency in the proposal, with one member stating in the comments:
