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Aave Community Dealing with Governance Chaos Ahead of Record-Breaking $50M Vote

Aave Chan Initiative is going on the offensive to defeat the Labs-backed "Aave Will Win" proposal.
Aave Community Dealing with Governance Chaos Ahead of Record-Breaking $50M Vote
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Aave’s governance civil war just got louder. Community steward Marc Zeller has published a scathing rebuke of Aave Aave Labs ahead of the DAO's monumental “Aave Will Win” vote, which seeks to route more than $50M in funding to the centralized Aave Labs team.

What's the Scoop?

  • Funding Flashpoint: Just before a Snapshot vote to grant Aave Labs the largest funding request in DAO history, Aave Chan Initiative (ACI) founder Marc Zeller has published an “audit,” questioning whether Aave Labs has delivered sufficient returns to justify its $86M in total historical funding.
  • No Accountability: Zeller's audit criticises Aave Labs for the total lack of transparency into its operations, flagging undisclosed AAVE holdings and potential governance influence as key concerns. The audit further opines that non-core Labs ventures have largely failed, crediting Aave's success instead to external service providers and contributors.
  • Depositor Angst: An unusually large $12M RLUSD withdrawal by Ripple Ripple Labs from Aave's institution-focused Horizon earlier today is fueling speculation that the move may be tied to rising uncertainty around Aave, particularly amid the impending departure of core developer BGD Labs.

Jack Inabinet

Written by Jack Inabinet

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Jack Inabinet is a Senior Analyst with a passion for exploring the bleeding edge of crypto and finance. Prior to joining Bankless, Jack worked as an analyst at HAL Real Estate where he conducted market research and financial analysis for commercial real estate development and acquisition activities in the Seattle region. He graduated from the University of Washington’s Michael G. Foster School of Business.

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