[Discussion] Safety Module - Governance Impact

[eboado]

Good work on the analysis @raho and the Messari team.

@raho

This is significantly lower than other on-chain DAOs, like ENS, Gitcoin, Uniswap, and Compound (who sit above 25% participation), and is even lower than less active DAOs like DyDx (5.3%).

• In practice, 14M is not the total votable supply of Aave at the moment, as there are different venues from where AAVE can’t participate (aAAVE, L2s, AAVE on stkABPT). So I would try to be careful with these assessments, as they lead to really wrong conclusions.
  Combining on-chain and Snapshot, Aave has one of the most (if not the most) active governances in DeFi.

@raho

there no longer appears to be a strong alignment between those staking AAVE and those participating actively in AAVE governance.

• Are you sure the data of stkAAVE participating in governance (as a % of voting power voting on proposals) is correct as under 5% ? I have important doubts about it, and that argument is key for your conclusion

@raho

there no longer appears to be a strong alignment between those staking AAVE and those participating actively in AAVE governance.

• Do you have data regarding the AAVE used to vote (including delegation always) coming from the one distributed as a reward on the Safety Module? And obviously only considering those stakes that decide to keep the rewards.