- The Aave DAO has been asked to take part in an ARC that would require members to “commit” to Ethereum’s PoS chain.
- The ARC proposes to signal that the DAO on the PoS mainnet is the canonical mechanism and to authorize the shutdown of other Aave deployments.
- Aave Protocol code hopes to be “fully functional” after the Merge tests.
The Aave DAO has been asked to take part in an Aave Request for Comment (ARC) that would require members to “commit” to Ethereum’s proof-of-stake (PoS) chain.
1/ Calling all GHOsts 👻
— Aave (@AaveAave) July 7, 2022
We have created an ARC for a new decentralized, collateral-backed stablecoin, native to the Aave ecosystem, known as GHO.
Read more below and discuss your thoughts for the snapshot (coming soon)!👇https://t.co/P7tHl9LbBe
The ARC proposal has two main points. The first one is to formally signal that the Aave DAO moved to the Ethereum mainnet under the PoS consensus is the canonical governance of the Aave DAO & Markets. Meanwhile, the second one is to authorize the Community Guardian to shut down any Aave deployments on other forks amid the Ethereum Merge.
According to the proposal by Aave, the Aave Protocol code hopes to be “fully functional” after the Merge tests. The builders involved in the protocol’s development have agreed that it is effectively impossible to sustain a viable Aave Market on any Ethereum fork running in an alternative consensus (such as proof of work).
Aave is ranked among the top DeFi applications worldwide and is an important infrastructure powering hundreds of other dApps.
With the Merge on the Ethereum mainnet, Aave governance voting and queueing duration will be slightly lower than three days and 1 day, respectively. It will be updated in one of the upcoming governance proposals.
While Aave expects some slight effects on its governance and probably on Aave UI, smart contracts would not have any changes.
Ethereum’s Merge is expected to happen within Q3 to Q4 2022. The client developers are currently working toward a soft deadline of September 19, 2022. With Ethereum Mainnet’s merger with Beacon Chain’s proof-of-stake system, it is expected to reduce Ethereum’s energy consumption by 99.95%.
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