Governance

In the context of DAOs, governance systems fall between two extremes:

• on the one hand there is fully centralized governance, lead by the project founders/developers, as is the case, for example, before protocols launch their native tokens: all decisions are made by the project contributors.

• at the other extreme there is the full realization of decentralized governance, i.e., governance acted through smart contracts, with votes expressing a function (so voting costs gas) and being enforceable without any possibility of intervention or modification: all decisions are made by majority vote of the token holders.

Between these two extremes lie all the hybrid or intermediate forms of governance that DAOs adopt at various stages of their existence. Beyond ideological discourses, there is no universally optimal or best formula of governance: it is important to take note of the distinctive characteristics of each project and adapt one's decision-making system to them.

For this reason, Aevo adopts a hybrid governance model focused on formulating and voting on Aevo Goverance Proposals (AGP) via Snapshot. In addition, Committees are introduced that have specific tasks to manage DAO funds and protocol revenues in order to speed up and simplify Governance activities.