The result will provide a clear picture of where Aave token owners stand in relation to the impending ETH hard fork.
In order to participate in an AAVE Request for Comment (ARC), holders of Aave tokens must “commit” to Ethereum’s proof-of-stake (PoS) consensus.
The ARC was put forth on August 16 in light of Ethereum’s impending switch to proof-of-stake. Members are asked to decide on Ethereum Mainnet’s PoS consensus implementation as the new “canonical” governance system. They are also granted the authority to ban any Aave deployments on any other Ethereum forks.
The proposal will shortly be posted on AAVE’s DAO, which enables holders of the tokens to vote on software advancements and protocol improvements.
The plan has two key specifications, which are listed on its governance website. The DAO implemented on Ethereum Mainnet’s PoS consensus will be officially acknowledged by members as the “canonical governance [mechanism]” of the Aave DAO and marketplaces.
The Community Guardian will also have the power to stop any deployments on any other forks that result from the Ethereum Merge after receiving a signal, which is the second provision.
The results of the governance vote should provide a clear indication of how their members feel about the switch from PoW to PoS.
The deployment of Aave V3 on the Ropsten and Goerli testnets during the Merge testing allowed them to claim that their code was “totally functional” with Ethereum’s consensus update in the report.
According to Tim Beiko, an Ethereum Core developer, the most recent tentative timeline for the Ethereum Merge calls for it to go into effect on September 15.
Aave, which was initially launched on the Ethereum Mainnet, is currently available on Avalanche, Arbitrum, Optimism, Polygon, Fantom, and Harmony. Aave’s market and token price could be affected by any alternative Ethereum forking that results from the Merge because $5.44 billion, or 72.6% of its total value locked (TVL), is stored on Ethereum.
At the time of writing, the AAVE token costs $109.95. After Uniswap (UNI) and ApeCoin, AAVE is currently the third-largest DAO by market cap ($1.54 billion) (APE).
