Aave DAO faces governance crisis as key contributors exit by July
The Aave Chan Initiative (ACI) will leave Aave DAO by July, following ongoing tensions in governance. The group has proposed an early lump-sum transfer to cover 120 days of its GHO funding stream. This move marks a shift in the project's operational structure.
Disputes over fee routing, voting power, and accountability have strained relations within Aave's governance. ACI, a key contributor, now plans a four-month wind down while managing governance tasks and handoffs.
Another major player, BGD Labs, will also stop work when its contract with Aave ends in April. The departures come as no recent changes to Aave DAO's governance have been recorded since December 2023. No public actions by founder Stani Kulechov on fee redirection or decentralisation have been documented.
ACI's exit follows a request for an accelerated payout from its funding stream. The group aims to ensure a smooth transition while stepping back from active involvement.
The departure of ACI and BGD Labs will reduce active governance support for Aave DAO. The project's next steps depend on how remaining contributors manage operations and funding. No immediate changes to governance rules have been announced.
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