This is an archive of our post on Aave governance forum. Read the full thread here.

LlamaRisk has identified some points about the proposed transaction that would benefit from further clarity.

The transaction details are not fully explained, specifically the marketplace and identity of the seller from whom INST tokens would be bought (if it’s not a standard market transaction). Important to note is the possible direct dealing with Instadapp DAO, which adds complexity since there is no officially established legal entity to handle such transactions.

Regarding the mentioned tokenomics updates, we suggest being careful about any changes in INST distribution, use, and governance that might draw unwanted regulatory attention. We believe that ACI/Aave protocol Embassy (APE)'s active role in governance offers a chance to shape protocol development and implementation of risk mitigation mechanisms.