Aave Labs Clarifies Proposed Foundation Has No Discretion Over Protocol Decisions

Odaily News: Aave Labs previously disclosed that it has submitted an ARFC proposal on the governance forum, proposing the establishment of a memberless foundation, the Aave Foundation, in the Cayman Islands. In response to community questions, it addressed the issues through an FAQ, stating that all matters, including protocol framework amendments, are still decided by the decentralized autonomous organization (DAO) through existing processes. The Aave Foundation holds asset ownership but has no discretion over protocol decisions. The protocol itself continues to be managed by the DAO through token holders, with no shareholders positioned above the Aave ecosystem. The same restrictions apply to all service providers engaged by the DAO, including matters such as inventories, parameters, budgets, vendor partnerships, and framework amendments.

In addition, the DAO can replace directors at any time through an AIP, or direct the Foundation to dissolve and determine the use of its remaining assets, including transferring them to a successor entity, all subject to the directors' fiduciary and statutory duties as well as applicable laws.