$16.3 million worth retroactive funding to be provided to Aave members | The Financial Express

$16.3 million worth retroactive funding to be provided to Aave members

According to Cointelegraph, the voting procedure for the proposal started in September, and at the time of the publication’s writing had passed 667,000 votes in relation to the funding, more than doubling the required amount of 320,000 votes

$16.3 million worth retroactive funding to be provided to Aave members
The funding will consist of a combination of AAVE tokens, Dai (DAI), Tether (USDT), USD Coin, USDC, alternative stable assets, and other volatility-oriented assets

The decentralised autonomous organisation (DAO) responsible for the decentralised finance (DeFi) platform has accepted to reward Aave Companies-based members with $16.28 million in the form of retroactive funding for their contribution in the development of Aave Protocol V3, as reported by Cointelegraph.

According to Cointelegraph, the voting procedure for the proposal started in September, and at the time of the publication’s writing had passed 667,000 votes in relation to the funding, more than doubling the required amount of 320,000 votes. As per the initial proposal, which was first pitched in August, the Aave request for Comment (ARC) needed retroactive funding for developments related to the V3 protocol. The $16.28 million amount consists of $15 million for work done by the developers over the time period of a year, and $1.28 million for expenses in relation to third-party auditors. 

On the basis of information by Cointelegraph, the funding will consist of a combination of AAVE tokens, Dai (DAI), Tether (USDT), USD Coin, USDC, alternative stable assets, and other volatility-oriented assets. While it is still unclear as to how retroactive public goods funding model came into existence, it was popularised after a collaborative post on Medium between Vitalik Buterin and Ethereum scaling solution Optimism in 2021. The post made the argument that retroactive public goods funding model provides an incentive for developers to work on projects, with them getting paid after the project gets completed and can be based on the value it provides. 

Moreover, Cointelegraph noted that insights from blockchain data provider Nansen, the Aave DAO saw a fall in the value of liquid assets throughout the cryptocurrency winter, down from over $800 million in April to approximately $378 million at the time of the publication’s writing. Despite everything, the community has voted in favour of a retroactive funding request, with community members commanding Aave members’ work.  

(With insights from Cointelegraph)

Also Read: Bloomberg’s Mike McGlone on how Bitcoin can help during fall in traditional stocks’ value

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