The result will give a good indication of where AAVE token holders are ahead of the upcoming ETH hard fork.
Aave (AAVE) token holders have been invited to participate in the Aave Request for Comment (ARC), which will require them to “commit” to Ethereum’s Proof-of-Stake (PoS) consensus.
The ARC proposed on Tuesday comes in light of Ethereum’s upcoming switch to Proof-of-Stake. It encourages participants to choose the Ethereum mainnet, running on PoS consensus, as the new “canonical” governance system, and also gives the right to close any Aave deployments on any alternative Ethereum forks.
A proposal for the Aave Decentralized Autonomous Organization (DAO) will soon be made, which allows AAVE token holders to vote on Aave software development and protocol updates.
As stated on the Aave management website, the offer has two main characteristics. First, participants will formally make it clear that the Aave DAO, deployed on the Ethereum mainnet PoS consensus, is the “canonical governance mechanism” for the Aave DAO and Aave markets.
Secondly, the signal will give the Community Guardian the right to shut down any Aave deployments on any other forks resulting from the Ethereum merge.
The outcome of the governance vote should give a good indication of how Aave members feel about Ethereum’s switch to PoS.
In the report, Aave also stated that its code is “fully functional” with the Ethereum consensus change that was made by deploying Aave v3 on the Ropsten and Goerli testnets during the merge tests.
The Ethereum merger is set to go live on September 15, according to the latest preliminary schedule set by Ethereum core developer Tim Beiko.
Related: Aave DAO Favoring Overcollateralized Stablecoin Divides Crypto Community
First deployed on the Ethereum mainnet, Aave is now available on Avalanche, Arbitrum, Optimism, Polygon, Fantom, and Harmony. However, $5.44 billion, or 72.6%, of Aave’s total value locked (TVL) is in Ethereum, so any alternative Ethereum fork resulting from the merger could affect the Aave market and the price of the token.
The price of the AAVE token at the time of writing is $109.95. Aave is currently the third largest DAO with a market capitalization of $1.54 billion behind Uniswap and ApeCoin.