Aave Community Divided Over $50 Million Governance Proposal
A conflict has erupted within the Aave governance community regarding a $50 million proposal. The debate centers on issues of treasury management, risk parameters, and control over protocol funds. Such disputes can be leading indicators of significant shifts in a protocol's total value locked or potential community forks.
- The proposal, titled "Aave Will Win," asks the DAO for approximately $51 million, consisting of $42.5 million in stablecoins and 75,000 AAVE tokens. In exchange, Aave Labs, the core development team, would direct 100% of revenue from all Aave-branded products to the DAO's treasury. - This funding request represents a significant portion of the Aave treasury, estimated at 31.5% of the total and 42% of non-AAVE reserves. - Critics, led by Marc Zeller of the Aave Chan Initiative (ACI), argue that Aave Labs has already received substantial funding, estimating it at over $86 million from an ICO, venture capital, and previous DAO payments. Zeller's ACI has published a report calling for greater transparency and measurable performance indicators for any new funding. - The proposal bundles several key decisions into a single vote: the large funding allocation, the formal ratification of Aave V4 as the protocol's future, and the creation of a new foundation to manage the Aave brand. Opponents have argued these items should be unbundled and voted on separately. - This dispute follows a previous conflict in December 2025, when Aave Labs redirected swap fees from Aave.com away from the DAO treasury to a wallet controlled by the company. - Aave Labs defends the proposal by highlighting its historical contributions, including the development of Aave V1, V2, and V3, and features like flash loans and the Safety Module that are central to the protocol's revenue. - The situation is intensified by the planned departure of another core technical contributor, BGD Labs, which is scheduled to cease its work with the DAO on April 1, 2026, citing "radical changes" in the DAO's structure. - One contentious point is the request for 75,000 AAVE tokens, which carry voting power and could lead to further centralization of governance influence if granted to Aave Labs.
