diff --git a/active-rfcs/0007-functional-async-api-change.md b/active-rfcs/0007-functional-async-api-change.md
index 9b892d05..4c8e27ba 100644
--- a/active-rfcs/0007-functional-async-api-change.md
+++ b/active-rfcs/0007-functional-async-api-change.md
@@ -8,7 +8,7 @@
 - Functional components must be written as plain functions
   - `{ functional: true }` option removed
   - `<template functional>` no longer supported
-- Async component must be created via the `createAsyncComponent` API method
+- Async component must now be created via a dedicated API method
 
 # Basic example
 
@@ -21,9 +21,9 @@ const FunctionalComp = props => {
 ```
 
 ``` js
-import { createAsyncComponent } from 'vue'
+import { defineAsyncComponent } from 'vue'
 
-const AsyncComp = createAsyncComponent(() => import('./Foo.vue'))
+const AsyncComp = defineAsyncComponent(() => import('./Foo.vue'))
 ```
 
 # Motivation
@@ -58,7 +58,7 @@ In 3.x, we intend to support functional components **only** as plain functions:
 ``` js
 import { h } from 'vue'
 
-const FunctionalComp = (props, slots) => {
+const FunctionalComp = (props, { slots, attrs, emit }) => {
   return h('div', `Hello! ${props.name}`)
 }
 ```
@@ -67,11 +67,47 @@ const FunctionalComp = (props, slots) => {
 
 - SFCs will no longer support `<template functional>` - if you need anything more than a function, just use a normal component.
 
-- The function signature has also changed - `h` is now imported globally. Instead of a render context, props and slots and other values are passed in. For more details on how the new arguments can replace 2.x functional render context, see the [Render Function API Change RFC](https://github.com/vuejs/rfcs/pull/28).
+- The function signature has also changed:
+  - `h` is now imported globally.
+  - The function receives two arguments: `props` and a context object that exposes `slots`, `attrs` and `emit`. These are equivalent to their `$`-prefixed equivalents on a stateful component.
 
-## Runtime Props Validation
+## Comparison with Old Syntax
 
-Props declaration is now optional (only necessary when runtime validation is needed). To add runtime validation or default values, attach `props` to the function itself:
+The new function arguments should provide the ability to fully replace the [2.x functional render context](https://vuejs.org/v2/guide/render-function.html#Functional-Components):
+
+- `props` and `slots` have equivalent values;
+- `data` and `children` are no longer necessary (just use `props` and `slots`);
+- `listeners` will be included in `attrs`;
+- `injections` can be replaced using the new `inject` API (part of [Composition API](https://vue-composition-api-rfc.netlify.com/api.html#provide-inject)):
+
+  ``` js
+  import { inject } from 'vue'
+  import { themeSymbol } from './ThemeProvider'
+
+  const FunctionalComp = props => {
+    const theme = inject(themeSymbol)
+    return h('div', `Using theme ${theme}`)
+  }
+  ```
+
+- `parent` access will be removed. This was an escape hatch for some internal use cases - in userland code, props and injections should be preferred.
+
+## Optional Props Declaration
+
+To make it easier to use for simple cases, 3.x functional components do not require `props` to be declared:
+
+```js
+const Foo = props => h('div', props.msg)
+```
+``` html
+<Foo msg="hello!" />
+```
+
+With no explicit props declaration, the first argument `props` will contain everything passed to the component by the parent.
+
+## Explicit Props Declaration
+
+To add explicit props declarations, attach `props` to the function itself:
 
 ``` js
 const FunctionalComp = props => {
@@ -85,27 +121,7 @@ FunctionalComp.props = {
 
 ## Async Component Creation
 
-With the functional component change, Vue's runtime won't be able to tell whether a function is being provided as a functional component or an async component factory. So in v3 async components must now be created via a new API method:
-
-``` js
-import { createAsyncComponent } from 'vue'
-
-const AsyncComp = createAsyncComponent(() => import('./Foo.vue'))
-```
-
-The method also supports advanced options:
-
-``` js
-const AsyncComp = createAsyncComponent({
-  factory: () => import('./Foo.vue'),
-  delay: 200,
-  timeout: 3000,
-  error: ErrorComponent,
-  loading: LoadingComponent
-})
-```
-
-This will make async component creation a little more verbose, but async component creation is typically a low-frequency use case, and are often grouped in the same file (the routing configuration).
+The new async component API is discussed in [its own dedicated RFC](https://github.com/vuejs/rfcs/pull/148).
 
 # Drawbacks
 
@@ -119,6 +135,4 @@ N/A
 
 - For functional components, a compatibility mode can be provided for one-at-a-time migration.
 
-- For async components, the migration is straightforward and we can emit warnings when function components return Promise instead of VNodes.
-
 - SFCs using `<template functional>` should be converted to normal SFCs.
diff --git a/active-rfcs/0010-optional-props-declaration.md b/active-rfcs/0010-optional-props-declaration.md
deleted file mode 100644
index e0c53936..00000000
--- a/active-rfcs/0010-optional-props-declaration.md
+++ /dev/null
@@ -1,92 +0,0 @@
-- Start Date: 2019-04-08
-- Target Major Version: 2.x & 3.x
-- Reference Issues: N/A
-- Implementation PR: N/A
-
-# Summary
-
-Make component `props` declaration optional.
-
-# Basic example
-
-``` html
-<template>
-  <div>{{ $props.foo }}</div>
-</template>
-
-<script>
-export default {}
-</script>
-```
-
-# Motivation
-
-In simple use cases where there is no need for runtime props type checking (especially in functional components), making props optional could result in simpler code.
-
-# Detailed design
-
-## Stateful Components
-
-When a component has no `props` declarations, all attributes passed by the parent are exposed in `this.$props`. Unlike declared props, they will NOT be exposed directly on `this`. In addition, in this case `this.$attrs` and `this.$props` will be pointing to the same object.
-
-``` html
-<template>
-  <div>{{ $props.foo }}</div>
-</template>
-
-<script>
-export default {}
-</script>
-```
-
-If the component has no other options, the entire `<script>` block can be dropped, so the following would be a valid SFC:
-
-``` html
-<template>
-  <div>{{ $props.foo }}</div>
-</template>
-```
-
-## Functional Components
-
-This is based on plain-function functional components proposed in [Functional and Async Component API Change](https://github.com/vuejs/rfcs/pull/27).
-
-``` js
-const FunctionalComp = props => {
-  return h('div', props.foo)
-}
-```
-
-To declare props for plain-function functional components, attach it to the function itself:
-
-``` js
-FunctionalComp.props = {
-  foo: Number
-}
-```
-
-Similar to stateful components, when props are declared, the `props` arguments will only contain the declared props - attributes received but not declared as props will be in the 3rd argument (`attrs`):
-
-``` js
-const FunctionalComp = (props, slots, attrs) => {
-  // `attrs` contains all received attributes except declared `foo`
-}
-
-FunctionalComp.props = {
-  foo: Number
-}
-```
-
-For mode details on the new functional component signature, see [Render Function API Change](https://github.com/vuejs/rfcs/pull/28).
-
-# Drawbacks
-
-N/A
-
-# Alternatives
-
-N/A
-
-# Adoption strategy
-
-The behavior is fully backwards compatible.
diff --git a/active-rfcs/0031-attr-fallthrough.md b/active-rfcs/0031-attr-fallthrough.md
new file mode 100644
index 00000000..f0efdf23
--- /dev/null
+++ b/active-rfcs/0031-attr-fallthrough.md
@@ -0,0 +1,217 @@
+- Start Date: 2019-11-05
+- Target Major Version: 3.x
+- Reference Issues: N/A
+- Implementation PR: N/A
+
+# Summary
+
+- `v-on` listeners used on a component will fallthrough and be registered as native listeners on the child component root. `.native` modifier is no longer needed.
+
+- `inheritAttrs: false` now affects `class` and `style`.
+
+- `this.$attrs` now contains everything passed to the component minus those explicitly declared as props, including `class`, `style`, and `v-on` listeners. `this.$listeners` is removed.
+
+- Functional components attribute fallthrough behavior adjusted:
+  - With explicit `props` declaration: full fallthrough like stateful components.
+  - With no `props` declaration: only fallthrough for `class`, `style` and `v-on` listeners.
+
+# Motivation
+
+In Vue 2.x, components have an implicit attributes fallthrough behavior. Any attribute passed to a component that is not declared as a prop by the component, is considered an **extraneous attribute**. Fore example:
+
+``` html
+<MyComp id="foo"/>
+```
+
+If `MyComp` didn't declare a prop named `id`, then the `id` is considered an extraneous attribute and will implicitly be applied to the root node of `MyComp`.
+
+This behavior is very convenient when tweaking layout styling between parent and child (by passing on `class` and `style`), or applying a11y attributes to child components.
+
+This behavior can be disabled with `inheritAttrs: false`, where the user expects to explicitly control where the attributes should be applied. These extraneous attributes are exposed in an instance property: `this.$attrs`.
+
+There are a number of inconsistencies and issues in the 2.x behavior:
+
+- `inheritAttrs: false` does not affect `class` and `style`.
+
+- Implicit fallthrough does not apply for event listeners, leading to the need for `.native` modifier if the user wish to add a native event listener to the child component root.
+
+- `class`, `style` and `v-on` listeners are not included in `$attrs`, making it cumbersome for a higher-order component (HOC) to properly pass everything down to a nested child component.
+
+- Functional components have no implicit attrs fallthrough behavior.
+
+In 3.x, we are also introducing Fragments (multiple root nodes in a component template), which require additional considerations on the behavior.
+
+# Detailed design
+
+## `v-on` Listener Fallthrough
+
+With the following usage:
+
+```html
+<MyButton @click="hello" />
+```
+
+- In v2, the `@click` will only register a component custom event listener. To attach a native listener to the root of `MyButton`, `@click.native` is needed.
+
+- In v3, the `@click` listener will fallthrough and register a native click listener on the root of `MyButton`. This means component authors no longer need to proxy native DOM events to custom events in order to support `v-on` usage without the `.native` modifier. In fact, the `.native` modifier will be removed altogether.
+
+### Avoiding Unnecessary Native Listeners
+
+The v3 behavior may result in unnecessary registration of native event listeners when the component author intends to use that event name as a component emitted custom event only.
+
+With flat VNode data and the removal of `.native` modifier, all listeners are passed down to the child component as `onXXX` functions:
+
+``` html
+<foo @click="foo" @custom="bar" />
+```
+
+compiles to:
+
+``` js
+h(foo, {
+  onClick: foo,
+  onCustom: bar
+})
+```
+
+With the fallthrough, all parent listeners are applied to the target element as native DOM listeners. In the above example, both a native click event and a custom one emitted by `this.$emit('click')` in the child will trigger the parent's `foo` handler. This may lead to unwanted behavior.
+
+The introduction of the `emits` option, as proposed in [#16](https://github.com/vuejs/rfcs/pull/16), provides a way to explicit declare an event to be a component custom event so that the event's listener will be excluded from the fallthrough (and `this.$attrs` in case of manual control). The two RFCs should be considered in tandem.
+
+## Explicitly Controlling the Fallthrough
+
+### `inheritAttrs: false`
+
+With `inheritAttrs: false`, the implicit fallthrough is disabled. The component can either choose to intentionally ignore all extraneous attrs, or explicitly control where the attrs should be applied via `v-bind="$attrs"`:
+
+``` html
+<div class="wrapper">
+  <!-- apply attrs to an inner element instead of root -->
+  <input v-bind="$attrs">
+</div>
+```
+
+`this.$attrs` (and `context.attrs` for `setup()` and functional components) now contains all attributes passed to the component (as long as it is not declared as props). This includes `class`, `style`, normal attributes and `v-on` listeners. This is based on the flat props structure proposed in [Render Function API Change](https://github.com/vuejs/rfcs/blob/master/active-rfcs/0008-render-function-api-change.md#flat-vnode-props-format).
+
+`v-on` listeners are included in `$attrs` as `onXXX` props. For example, `@click` will result in an `onClick` prop in `$attrs`. If the user wants to handle attributes and listeners separately, it can be done with simple helper functions that separate props that start with `on` from those that don't.
+
+### Multiple Root / Fragment Components
+
+In Vue 3, components can have multiple root elements (i.e. fragment root). In such cases, an automatic merge cannot be performed. The user will be responsible for spreading the attrs to the desired element:
+
+``` html
+<template>
+  <span>hello</span>
+  <div v-bind="$attrs">main element</div>
+</template>
+```
+
+If `$attrs` is non-empty, and the user did not perform an explicit spread (checked by access to `this.$attrs` during render), a runtime warning will be emitted. The component should either bind `$attrs` to an element, or explicitly suppress the warning with `inheritAttrs: false`.
+
+### In Render Functions
+
+In manual render functions, it may seem convenient to just use a spread:
+
+``` js
+export default {
+  props: { /* ... */ },
+  inheritAttrs: false,
+  render() {
+    return h('div', { class: 'foo', ...this.$attrs })
+  }
+}
+```
+
+However, this will cause attrs to overwrite whatever existing props of the same name. For example, there the local `class` may be overwritten when we probably want to merge the classes instead. Vue provides a `mergeProps` helper that handles the merging of `class`, `style` and `onXXX` listeners:
+
+``` js
+import { mergeProps } from 'vue'
+
+export default {
+  props: { /* ... */ },
+  inheritAttrs: false,
+  render() {
+    return h('div', mergeProps({ class: 'foo' }, this.$attrs))
+  }
+}
+```
+
+This is also what `v-bind` uses internally.
+
+If returning the render function from `setup`, the attrs object is exposed on the setup context:
+
+``` js
+import { mergeProps } from 'vue'
+
+export default {
+  props: { /* ... */ },
+  inheritAttrs: false,
+  setup(props, { attrs }) {
+    return () => {
+      return h('div', mergeProps({ class: 'foo' }, attrs))
+    }
+  }
+}
+```
+
+Note the `attrs` object is updated before every render, so it's ok to destructure it.
+
+## Functional Components
+
+In 2.x, functional components do not support automatic attribute fallthrough and require manual props merging.
+
+In v3, functional components use a different syntax: they are now declared as plain functions (as specified in [Render Function API Change](https://github.com/vuejs/rfcs/blob/master/active-rfcs/0008-render-function-api-change.md#functional-component-signature)).
+
+### With Explicit Props Declaration
+
+A functional component with `props` declaration will have the same automatic fallthrough behavior as stateful components. It can also explicitly control the attrs with `inheritAttrs: false`:
+
+``` js
+const Func = (props, { attrs }) => {
+  return h('div', mergeProps({ class: 'foo' }, attrs), 'hello')
+}
+
+Func.props = { /*...*/ }
+Func.inheritAttrs = false
+```
+
+### With Optional Props Declaration
+
+v3 functional components also support [Optional Props Declaration](#TODO). When a functional component has no `props` option defined, it receives all attributes passed by the parent as its `props`:
+
+``` js
+const Foo = props => h('div', { class: 'foo' }, props.msg)
+```
+
+When a functional component is leveraging optional props declaration, there is only implicit fallthrough for `class`, `style`, and `v-on` listeners.
+
+The reason for `class`, `style` and `v-on` listeners to be whitelisted is because:
+
+- They cover the most common use cases for attribute fallthrough.
+- They have close to no risk of clashing with prop names.
+- They require special merge logic instead of simple overwrites, so handling them implicitly yields more convenience value.
+
+If a functional component with optional props declaration needs to support full attribute fallthrough, it needs to declare `inheritAttrs: false`, pick the desired attrs from `props`, and merge it to the root element:
+
+``` js
+// destructure props, and use rest spread to grab unused ones as attrs.
+const Func = ({ msg, ...attrs }) => {
+  return h('div', mergeProps({ class: 'foo' }, attrs), msg)
+}
+Func.inheritAttrs = false
+```
+
+## API Deprecations
+
+- `.native` modifier for v-on will be removed.
+- `this.$listeners` will be removed.
+
+# Adoption strategy
+
+- Deprecations can be supported in the compat build:
+  - `.native` modifier will be a no-op and emit a warning during template compilation.
+  - `this.$listeners` can be supported with a runtime warning.
+
+- There could technically be cases where the user relies on the 2.x behavior where `inheritAttrs: false` does not affect `class` and `style`, but it should be very rare. We will have a dedicated item in the migration guide / helper to remind the developer to check for such cases.
+
+- Since functional components uses a new syntax, they will likely require manual upgrades. We should have a dedicated section for functional components in the migration guide.