Aave's governance upgrade aims to revamp protocol

Aave's governance upgrade aims to revamp protocol

Aave, the top web3 lending protocol, is aiming to revamp its governance system.

On August 28th, BGD Labs published a plan for activating to the project's governance forum. After being activated, voting will take place on the Polygon PoS and Avalanche networks to ensure low transaction fees, with the Aave DAO supporting 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 enable the use of aAAVE as a voting asset alongside AAVE and stkAAVE. It will also launch the Aave Delivery infrastructure to enable cross-chain communication.

BGD said all Aave's infrastructure will be controlled by governance as it moves forward, with the a.DI solving past 'technical limitations'. BGD said the process would take 21 days to complete. The changes will reset all Aave governance delegates.

discussions regarding Aave governance v3 began in January 2022, and it resulted in a proposal passed in July via an off-chain vote.

CryptoGecko notes that the price of AAVE is trending sideways despite the news, showing a 0.2% drop in the past 24 hours.