Aave community members urged to support the Ethereum PoS chain
August 17, 2022 9:41 AM
The outcome will show clearly where owners of AAVE tokens stand in relation to the upcoming ETH hard fork.
Aave token owners must "commit" to Ethereum's proof-of-stake (PoS) consensus in order to take part in an Aave Request for Comment (ARC).
In view of Ethereum's upcoming transition to proof-of-stake, the ARC was presented on August 16. Members are asked to decide on the Ethereum Mainnet's PoS consensus implementation as the new "canonical" governance system, and they are also granted the authority to ban any Aave deployments on any other Ethereum forks.
The proposal will soon be made available on the AAVE DAO, a platform that allows holders of AAVE tokens to vote on software updates and AAVE protocol upgrades.
On Aave's governance website, two major requirements for the strategy are highlighted. Members will formally recognize the Aave DAO built on Ethereum Mainnet's PoS consensus as the "canonical governance [mechanism]" of the Aave DAO and Aave marketplaces.
The second requirement is that upon receiving a signal, the Community Guardian shall have the authority to prevent any Aave deployments on any other forks resulting from the Ethereum Merge.
How the Aave members feel about the change from PoW to PoS should be evident from the governance vote's outcomes.
Aave was able to state in the report that its code was "fully functional" with Ethereum's consensus update because to the deployment of Aave V3 on the Ropsten and Goerli testnets during the Merge testing.
A developer for Ethereum Core named Tim Beiko claims that the most recent tentative schedule for the Ethereum Merge asks for it to take place on September 15.
Aave is presently accessible on Avalanche, Arbitrum, Optimism, Polygon, Fantom, and Harmony. It was first released on the Ethereum Mainnet. Any alternative Ethereum forking that arises from the Merge could have an impact on Aave's market and token price because $5.44 billion, or 72.6% of its total value locked (TVL), is kept on Ethereum.
The AAVE token costs $109.95 at the time of this publication. By market size, AAVE ($1.54 billion) is presently the third-largest DAO behind Uniswap (UNI) and ApeCoin (APE).