Aave Delegate Slams Aave Labs’ Track Record as Governance Dispute Continues
The Defiant
by SquiffsFebruary 25, 2026
AI-Generated Deep Dive Summary
The ongoing dispute between Aave Labs and the Aave DAO has intensified as tensions rise over governance decisions. Aave Labs recently sought $51 million in development funding through its "Aave Will Win" proposal, sparking backlash from delegates within the decentralized autonomous organization (DAO). This move has further strained relations, with some members accusing the lab of prioritizing its own interests over the broader community's needs.
The conflict gained momentum when BGD Labs, a key service provider to the DAO, announced its intention to withdraw its support. The decision followed Aave Labs co-founder Stani Kulechov's proposal to shift focus towards Aave V4, with plans to gradually phase out Aave V3 by adjusting its parameters once V4 is deemed mature. This strategy has been met with skepticism, particularly from delegates who argue that V3 remains a successful and widely-used protocol.
Marc Zeller, founder of the Aave-Chan Initiative (ACI), highlighted the significance of BGD's departure, calling it a major shift in the ecosystem. In response to the growing tensions, Zeller sold a portion of his AAVE holdings, signaling potential concerns about the DAO's stability and future direction. This decision underscores the broader implications of governance disputes within decentralized finance (DeFi) projects.
The situation highlights critical questions about how DeFi protocols balance innovation with existing infrastructure. While Aave V4 promises new features and improvements, critics argue that abandoning or diminishing support for V3 could alienate users and harm the ecosystem's stability. As the dispute unfolds, it raises important considerations for other DeFi protocols navigating similar governance challenges.
For crypto enthusiasts and investors, this matter is significant as it sheds light on the complexities of decentralized decision-making and its impact on project sustainability. The outcome of this debate could set a precedent for how DAOs handle competing priorities and利益在去中心化金融中的协调。
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Originally published on The Defiant on 2/25/2026