Aave Supports Ethereum's Transition From PoW To PoS

AAVE supports Ethereum to PoS transition. (photo: Bitcoin Exchange Guide)

JAKARTA – The Merge Ethereum has become a hot topic in recent weeks. The reason is, it is a process of transitioning Ethereum consensus from Proof-of-Work to Proof-of-Stake. So this is an important event for Ethereum and the other cryptocurrency industry.

A number of stablecoin issuers including Circle (USDC) and Tether (USDT) have announced their support for The Merge Ethereum. This time, Aave (AAVE) announced its support for the Ether transition.

At the same time, rumors about the possibility of Ethereum giving birth to a PoW version fork (branch) are increasingly sticking out. Therefore, AAVE announced that it would review whether to switch to the new version of ETH PoS and reject the PoW version of the hard fork version of ETH.

According to the proposal, the DAO member governing the open source liquidity protocol – Aave DAO – will review whether to go for a new version of the Ethereum mainnet and reject the forked version which continues to use the consensus PoW mechanism. In short, the Aave protocol will be shut down on any fork arising from The Merge.

“There is a general consensus from builders involved in protocol development that it is effectively impossible to maintain a viable Aave marketplace on any Ethereum hard fork running alternative consensus (such as Proof of Work),” reads the statement from the Aave proposal.

To ensure the continued existence of the protocol for the community, Aave DAO should consider giving a strong signal that the Aave Protocol should commit to the Ethereum Mainnet, running under a Proof of Stake consensus," the statement added.

The Ethereum transition from PoW to PoS is scheduled to be completed on September 15 or 16. This process itself has received great attention from the crypto community. Some support the Ether to PoS transition and some support the PoW version of Ether.