How does AAVE governance impact token holders?

[cryptohog]

AAVE token holders can actively shape the protocol through AAVE governance:

Voting Power: Each AAVE token equals one vote on proposals.

Proposal Submission: Users with enough tokens can propose upgrades, new collateral types, or risk parameter changes.

Delegation: Tokens can be delegated to trusted governance participants without transferring ownership.

Influence on Protocol Economics: Governance decisions directly affect staking yields, borrowing rates, and token incentives.

Advanced users often participate in governance to align protocol changes with their DeFi strategies, making voting both a financial and strategic tool.

[AIcash]

try to compete in voting power with whales