As described in Aavenomics, an important part of the community governance is how governance ideas eventually are implemented in the protocol.
I’ll give a short overview of this process, in its current form.
Ideation phase (Optional)
Any member of the community can start a discussion in these forums. If the discussion becomes a viable proposal, then a community member may decide to submit the proposal as an AIP (Aave Improvement Proposal).
The AIP at this stage is a WIP (Work In Progress).
Discussion and Signal collection phase
The proposal is polished and formatted according to the AIP guidelines, as detailed on https://aave.github.io/aip/ (currently a work in progress).
More discussions on the proposal are made if relevant. During this phase, community ‘signal’ is collected to determine whether there is support within the community for the proposal.
If there is support, then an AIP editor will assign an AIP number to the proposal, the creator will submit a PR for the AIP to the AIP repository on Github, and the AIP will be in the ‘Proposed’ stage.
If a positive rough consensus is formed around the proposed AIP, the Genesis team will implement and deploy the required smart contracts, then submit the AIP + contracts to governance for a token holder vote.
As per industry best practices, any deployed code will be thoroughly checked and audited.
Implementation or Rejection phase
If approved by AAVE token holders, the AIP’s associated code will automatically be executed (i.e. implemented in the Aave Protocol). The AIP will then be in its final ‘Approved’ stage.
If rejected by AAVE token holders, then the AIP will move to the ‘Rejected’ stage and the associated code will not be executed.
For more information, see these sections of the Aavenomics: