Aave Labs said a proposed Aave Foundation in the Cayman Islands would not have independent authority over protocol decisions, responding to community questions after submitting an ARFC proposal on the governance forum. In an FAQ, the team said matters including framework amendments would still be decided by the decentralized autonomous organization, or DAO, through the existing process. The foundation would hold title to assets, but it would not have discretion over protocol governance. Aave Labs also said the protocol would continue to be managed by the DAO through tokenholders, and that no shareholder would sit above the Aave ecosystem. The same limits, it added, would apply to service providers hired by the DAO, as well as listings, parameters, budgets, vendor relationships and framework amendments. The DAO would also retain the ability, through an AIP, to replace directors at any time, instruct the foundation to dissolve, and determine how any remaining assets are used, including transferring them to a successor entity, subject to directors’ fiduciary and statutory duties and applicable law.
Aave Labs said it had previously submitted an ARFC proposal on the governance forum to establish a memberless foundation in the Cayman Islands, to be called the Aave Foundation.
Responding to community questions in an FAQ, Aave Labs said all matters, including amendments to the protocol framework, would still be decided by the decentralized autonomous organization, or DAO, through the existing process. The Aave Foundation would hold title to assets, but it would have no discretion over protocol decisions. The protocol itself would continue to be governed by the DAO through tokenholders, and Aave Labs said no shareholder stands above the Aave ecosystem.
The company added that the same limits would apply to all service providers hired by the DAO, as well as to listings, parameters, budgets, vendor partnerships and framework amendments.
Aave Labs also said the DAO could, through an AIP, replace directors at any time or instruct the foundation to dissolve, and decide how any remaining assets should be used, including transferring them to a successor entity. Those actions, it said, would remain subject to directors’ fiduciary duties, statutory duties and applicable law.
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