Building a robust governance interface for its ecosystem is what the Aave team has always wanted to accomplish. This governance launch of its Ropsten Testnet is like winning another milestone for the Aave community.
Community governance is a crucial step towards the full decentralization of an ecosystem. Its main objective is to allow a protocol to evolve into a resilient financial architecture with no weak points and not rely on any single team. It helps the protocols to improve their scalabilities.
The Aave team now aims to kickstart the DeFi protocol and expand its reach beyond just being open-source finance. It aims to revolutionize future finance and not just reproduce traditional finance with blockchain but also create something better and innovative.
Therefore, the Aave community has invested around $650 million into the Aave markets to transform phase 1 governance protocol to phase 2 governance protocol; launching the governance on the Ropsten Testnet is a path toward this development.
The Ropsten Testnet is launched before the Ethereum mainnet launch to allow the Aave community to experience the governance module amidst a safe and free environment. Earlier in 2019, the Ethereum Ropsten Testnet experienced a split after being released in Istanbul. So the developers are very cautious this time about its release, and it decided a prelaunch even before the launch of the Ethereum mainnet. This made the platform unstable for quite some time, but there was no huge cause for alarm as the developers brought things under control very soon.
For any decentralized project, AIPs serves as the main tool for its evolution. Therefore, the Aave team is now inviting applications to participate in the first votes on the APIs. The API votes will be focused on the ‘Aave Improvement Proposals’. The proposal includes collecting the community’s consensus regarding the API and then converting the API into audited codes and then submitting it for approval of the Community.
The Aave community can vote on new proposals without having to incur gas costs. The users can try this module and see whether it fits their needs before it launches on the mainnet. All votes will be considered valid and will apply as soon as the governance on the Ropsten mainnet is launched.
With the launch of phase 1 governance, the LEND assets will be considered for the first AIP votes except in the cases involving token migration. In such cases, the Aave assets would be used for future votes and the Aave governance protocols.
The Aave community will decide the transitioning of the LEND assets to the Aave community. Every vote has a particular deadline, and the entire community can express their approval or rejection, and it would be considered for the long term.
After the Voting process is complete and a final API is selected, now it is time to launch the governance on the mainnet. The launch of the governance on the Ropsten Testnet is a bid to select the best API on the platform.