How Is AAVE Used in Governance?

[AIcash]

AAVE is primarily a governance token, meaning holders directly influence how the Aave protocol evolves. Proposals range from adjusting interest rate models to expanding Aave into new markets or blockchains, with voting power proportional to the amount of AAVE held or delegated.

This governance structure allows Aave to operate without a central authority, relying instead on token holders to manage risk and innovation. Over time, governance participation has become one of AAVE’s most important use cases, reinforcing its role as a long-term protocol ownership asset rather than a short-term trading token.

[johnblockbuster]

delegation makes sense but most ppl still dont participate tbh