Cryptocurrency

Aave DAO urges members to commit support for Ethereum’s PoS merge via governance proposal

DeFi protocol Aave has asked its token holders to join. Aave Request for Comments (ARC), Commit to POS merge for Ethereum (ETH).

According to the documentation:

“Aave DAO commits to choosing Ethereum mainnet running under Proof of Stake (PoS) consensus over Ethereum forks running alternative consensus.”

The August 16th proposal formally determines that the deployment of DAOs on the Ethereum PoS mainnet is “the ‘standard’ governance of Aave DAOs and the market”.

It also gives the community the power of guardianship to shut down Aave deployments on any Ethereum hard fork after the merge.

According to the post, the Aave protocol code works perfectly with Ethereum PoS. Successful deployments of Aave V3 on Ropsten and Goerli testnets have been revealed.

Meanwhile, the ARC document also states that protocol developers believe that an Ethereum fork running on alternate consensus cannot effectively sustain a viable Aave marketplace.

“To ensure the continued existence of the protocol for the community, the Aave DAO strongly advises that the Aave protocol should be committed to the Ethereum mainnet running under the Proof of Stake consensus. need to consider.”

The results of the vote are expected to indicate a consensus among DAO members regarding the transition of Ethereum to PoS.

The long-awaited Ethereum Merge will see Ethereum mainnet transition from a Proof of Work (PoW) consensus to a Proof of Stake network. While many within the Ethereum community are looking forward to this, it has created a lot of drama as some are considering a PoW hard fork after the merge.

Aave is one of the largest DeFi platforms and has the third largest market cap among DAOs. The protocol was launched on the Ethereum mainnet with a total amount of locked assets of $5.44 billion. It has also been deployed on networks such as Polygon (MATIC), Avalanche (AVAX), Optimism, Harmony and Fantom (FTM).

Merge support is not surprising given that major protocols such as Chainlink (LINK), USDC issuer Circle, and Tether have also declared support for migration.

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