DeFi Protocol Aave has published a roadmap for the transition to decentralized governance. The first step will be to exchange 1.3 billion LEND tokens for 16 million AAVE tokens to manage the protocol.
Aavenomics is following in the footsteps of other DeFi protocols moving towards decentralized governance. Recall that at the beginning of the year, the Compound project announced plans to issue a COMP token to manage the development of the project and the lending protocol. The launch of COMP on June 15 spurred strong growth in the DeFi industry, with frozen assets recently exceeding $ 4 billion.
According to DeFi Pulse, more than $ 400 million of ETH is currently locked in the Aave protocol. The first step in the Aavenomics plan is to convert the existing 1.3 billion LEND tokens into 13 million AAVE tokens, with an additional 3 million tokens dedicated to the "ecosystem reserve" ... This reserve will be used for future community-determined incentive payments.
The transition will be accomplished by voting using LEND tokens in the Genesis Governance Poll to deploy smart contracts required for decentralized governance. AAVE holders will be able to use tokens to participate in staking in the Safety Module, which acts as insurance against unforeseen events.
AAVE stakers will receive a percentage of commissions, as well as payments for maintaining the safety of the project. The Balancer Pool will stimulate market liquidity by providing additional potential rewards in the form of swap fees and BAL token distributions to AAVE holders. As a reminder, earlier this month, Aave launched a new unsecured crypto lending service.