Aave calls on members to commit to Ethereum PoS chain

Aave token owners were asked to participate in an Aave Response for Comment (ARC), which would require them “commit” Ethereum’s proof of-stake consensus.

In light of Ethereum’s upcoming transition from proof-of-stake to cryptocurrencies, the ARC was proposed on August 16. The ARC requires members to choose the Ethereum Mainnet under PoS consensus to be the new “canonical” governance structure. It also gives power to halt any Aave deployments on alternative Ethereum forks.

ARC for the Aave DAO to signal support PoS ETH upon The Merge https://t.co/0A4YkpHLdq
— stani.lens @ ETHLatam (,) (@StaniKulechov) August 16, 2022

The proposal will be submitted to Aave’s DAO. This allows Aave token holders the ability to vote on software development and updates to AAVE protocol.

The proposal has two main specifications, as described on Aave’s governance website. First, members will signal to the Aave DAO that is deployed on Ethereum Mainnet’s PoS consensus that it is the “canonical Governance [mechanism] of the Aave DAO” and Aave markets.

A second signal will allow the Community Guardian to stop any Aave deployments on other forks that result from the Ethereum Merge.

Aave Companies have proposed this ARC that calls for the Aave DAO to commit to selecting the Ethereum Mainnet running under the Proof of Stake consensus https://t.co/eDGwjLFKz7
— Aave (@AaveAave), August 16, 2022

The governance vote will give an indication of where Aave members stand in relation to Ethereum’s transition from PoS to Ethereum.

Aave reported that its code was functional with Ethereum’s consensus changes. This was achieved by Aave V3 being deployed on the Ropsten, Goerli and Merge testnets.

According to Tim Beiko, Ethereum Core Developer, the Ethereum Merge will take effect on Sep. 15.

Related: Aave DAO approves overcollateralized stablecoin splittings crypto community

Aave was first deployed on the Ethereum Mainnet. Aave can now be found on Avalanche and Arbitrum, Optimism. Polygon, Fantom and Harmony. But, Ethereum holds $5.44 billion or 72.6% (TVL) of Aave’s total value. Any alternative Ethereum forking that results from the Merge could have an impact on the Aave market price and the token price.

At the time of writing, the AAVE token’s price was $109.95. AAVE is currently third in market capital ($1.54 billion), behind Uniswap and ApeCoin.

https://cointelegraph.com/news/aave-calls-on-members-to-commit-to-ethereum-pos-chain

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