Aave

Overview

In May 2023, Aave DAO introduced the Recognized Delegate Framework to establish clear expectations for governance participants, improve transparency, and professionalize delegate roles. This framework set minimum participation requirements, governance conduct rules, and reporting standards for delegates.

In February 2024, Aave renewed the Orbit Program, providing structured compensation to high-performing delegates while ensuring a strict separation between service providers and governance delegates to maintain ethical and professional governance standards.

Compensation Structure & Eligibility

Compensation: $5,000 in GHO/month per delegate

Recognized Delegate Framework – Key Requirements

• Minimum delegation: 20,000 AAVE

• On-chain voting participation: ≥ 80%

• Voting rationale required: Delegates must publicly communicate their governance decisions and justifications

• Minimum tenure: 120 days since delegate platform creation

• Adherence to the Delegate Code of Conduct: Commitment to transparency, professionalism, and governance integrity

• Conflict of Interest Policy: Service providers cannot serve as paid delegates to ensure governance neutrality

Governance & Oversight

Delegate Code of Conduct

• Integrity & transparency

• Due diligence & knowledge

• Clear communication

• Avoid conflicts of interest

Oversight Mechanisms

• Orbit Tracker App: Provides a real-time overview of delegate performance, voting activity, and participation rates

• ACI (Aave Chan Initiative): Administers Orbit, ensures gas fee reimbursements are correctly allocated, and monitors delegate participation

• Separation of service providers: Ensures delegates remain independent from Aave’s service providers to prevent conflicts of interest

Gas Fee Reimbursement

With the transition to Governance V3, Aave introduced gasless voting via Gelato, eliminating broad gas rebates while maintaining targeted reimbursements for proposal execution.

Implementation Plan & Timeline

• Q2 2023 – Recognized Delegate Framework introduced to formalize delegate roles and responsibilities.

• Q1 2024 – Orbit Program renewed, reinforcing structured incentives and stricter governance criteria.

• Q1 2024 – Delegates transition to Orbit-based compensation.

• Q2 – Q4 2024 – Ongoing evaluation of governance efficiency and delegate contributions.

• Q1 2025 – Potential review and refinements based on governance activity.

Key Takeaways

• Aave DAO enforces structured governance accountability, requiring voting rationales and minimum participation rates.

• The Recognized Delegate Framework establishes clear expectations for professionalized governance participation.

• The Orbit Program compensates top-performing delegates while preventing service provider conflicts.

• Governance participation is tracked through the Orbit Tracker, providing transparency on delegate performance.

• Gas fee reimbursements are limited to essential proposal execution, optimizing DAO spending.