- Aave DAO is voting on a proposal that would authorize up to $42 million in funding for Aave Labs while shifting strategic focus to an upcoming V4 of the protocol.
- The plan initially included aggressive measures to deprioritize the highly successful current V3, sparking significant community backlash and the departure of a major contractor.
- Following criticism, Aave Labs revised its stance, promising no forced migration from V3 to V4 and acknowledging V3’s continued role.
The governing body of the world’s largest DeFi protocol, Aave DAO, is in a tense final vote on a controversial strategic proposal by its founding company, Aave Labs. The plan seeks a substantial financial commitment from the DAO’s treasury while aiming to make the unreleased V4 the protocol’s future centerpiece.
Consequently, the vote has exposed deep divisions within the community, particularly over the initial suggestion to sideline the battle-tested V3, which manages over $26.3 billion in user deposits. This stance prompted Bored Ghosts Developing, a major DAO contractor, to announce it would not seek a renewed contract this year, calling the proposal “borderline outrageous.”
However, Aave Labs revised its position earlier this week, stating in a governance forum post that “there will be no forced migration” and that V3 can remain operational “for as long as the DAO decides it should.” The proposal also includes directing all revenue from Aave-branded products back to the DAO and creating a new foundation.
Meanwhile, the funding request—$25 million for ongoing development and $17.5 million tied to future launches—faces scrutiny for its scale, amounting to nearly a third of the DAO’s treasury. Prominent delegate Marc Zeller argued the asks should be separated into individual votes so “the community can support what it agrees with and refine what it doesn’t.” Voting concludes Saturday, with the “aye” votes holding a narrow 52% lead according to a live Snapshot page.
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