Aave's governance upgrade is underway

Aave's governance upgrade is underway

Aave, the top web3 lending institution, is gearing up to change its governance.

On August 28 BGD Labs published a plan for activating to the project's governance forum. After being 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 assisting in the costs incurred by users participating in governance.

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

The upgrade will allow the use of aAAVE as a voting asset alongside AAVE and stkAAVE. It also will launch the Aave Delivery infrastructure to enable cross-chain communication.

BGD said all Aave's infrastructure will be controlled by governance moving forward, with the a.DI solving past 'technical limitations'. The process will take 21 days to complete, BGD said. It will also reset all Aave management delegates, who will be reset by the end of the year.

In January 2022, discussions surrounding Aave Governance v3 began, resulting in a proposal passed in July via an off-chain vote.

Despite the news, AAVE is trending sideways despite a 0.2% decrease in the last 24 hours, CoinGecko said.