Title : Aave devs look set to receive $16.3M via retroactive funding

Sep 08, 2022 03:20AM ET

By:AnalysisWatch

The DAO behind the decentralized financial platform Aave has accepted a proposal to reward Aave Companies members with $16.28 million in retroactive funding for their role in the development of the Aave V3 Protocol.

Voting for the proposal began on September 6 and, at the time of writing, has already surpassed 667,000 votes in favor of the funding, more than double the 320,000 needed. Voting will end on September 8.

According to the initial proposal, first submitted on Aug. 10, the Aave request for comment sought "retroactive funding" for development work on the V3 protocol.

The $16.28 million is made up of $15 million for work done by developers over more than a year and $1.28 million for costs paid to outside auditors. The money will be given to members of the company behind the popular DeFi protocol, Aave Companies.

The funding will be made up of a combination of AAVE tokens, Dai , Tether , USD Coin , alternative stable assets, and higher volatility assets upon approval of the proposal.

The basic principle behind the concept is that "it is easier to agree on what was useful than what will be useful."

Vitalik suggests in the post that it can be difficult in the initial phase of a project to get it off the ground, as donations and grant money are insufficient to incentivize developers.

Despite this, the community has voted overwhelmingly in favor of the retroactive funding request, with community members suggesting that "the Ave companies did a tremendous job and should be paid for it."

Some community members, however, took issue with the proposal's lack of transparency, with one stating in the comments, "I support the proposal, but would like as much transparency as possible to raise the bar for any other retroactive proposals in the future."