Aave Poised For Multi-Chain Governance Overhaul – Crypto News – Crypto News
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Aave Poised For Multi-Chain Governance Overhaul – Crypto News

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Aave, the top web3 lending protocol, is gearing up to overhaul its governance process.

On Aug. 28, BGD Labs published a plan for activating “Aave governance v3” to the project’s governance forum. Once activated, voting will take place through a new interface on the Polygon PoS and Avalanche networks to ensure low transaction fees, with the Aave DAO subsidizing the costs incurred by users participating in governance.

Aave’s governance upgrade will also activate on Ethereum to provide a backup network.

“After months of research, implementation, and security procedures, we are excited to announce that Aave Governance v3 [is] ready for activation,” wrote BGD Labs. “Most of the Aave smart contracts infrastructure will be affected by the activation of Aave Governance v3, as de-facto, all-controlled systems (and how they are controlled) will change.”

The upgrade will enable the use of aAAVE (AAVE tokens deposited into the AAVE protocol) as a voting asset alongside AAVE and stkAAVE. It will also launch the Aave Delivery infrastructure (a.DI) to facilitate cross-chain communication.

BGD said all of Aave’s infrastructure will be controlled by governance moving forward, with the a.DI solving past “technical limitations.” BGD estimated the migration process will take 21 days to complete. The upgrade will also reset all Aave governance delegates.

Discussions regarding Aave governance v3 began in January 2022, culminating in a proposal passed via a formal on-chain vote in July.

The price of AAVE is trending sideways despite the news, posting a 0.2% drawdown over the past 24 hours, according to CoinGecko.

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