A proposal to award members of Aave Companies $16.28 Million in retroactive funding to develop V3 of Aave Protocol seems likely to be approved. A proposal was made by the DAO of Aave to award members of Aave Companies $16.28 Million in retroactive funding in recognition of their contribution in developing Aave Protocol V3.
The vote began Sept. 6 and has passed 667,000 votes to approve the funding. This is more than twice the required 320,000 votes. The vote will close on September 8.
The original proposal was presented on Aug. 10. According to the Aave Request For Comment (ARC), the request for retroactive funding was made for the development of the V3 protocol.
$15 million is for developers’ work over a period of more than a year, and $1.28million for third-party auditors costs. The total $16.28 million includes $15 million for development work. Aave Companies, the company behind the popular DeFi protocol will receive the money.
Funding will consist of AAVE tokens, Tether ( USDT), USD coin ( USDC), and other stable assets (e.g. Frax stablecoin, and higher volatility assets (e.g. After the passing of the proposition, Synthetix was created.
Vitalik buterin supports public funding for developers
Although the exact origins of retroactive public good funding are not known, it was popularized after a Medium post by Vitalik Buterin (Ethernet scaling solution firm Optimism) on Jul. 21, 2021.
This post argued that retroactive public goods financing provides developers with incentives to work on projects. Developers can get paid once the project is complete and can be based upon the value it provides.
It is easier to agree on what was helpful than what will be useful as the core principle of the concept.
Vitalik writes in his post that it is not easy to start a project, as donations and grants money are insufficient to encourage developers.
Nansen, a blockchain data provider, says that the Aave DAO’s liquid assets have seen a dramatic drop in value during the crypto winter. It dropped from more than $800 million in April, to $378 million as of the time of writing.
The community overwhelmingly voted for the retroactive funding request despite this. Community members suggested “Aave Companies did incredible work and should be paid that.”
However, some community members were critical of the lack transparency in the proposal. One commented that he supported the proposal but wanted more transparency to make it better for future retroactive proposals.