- The Aave Chan Initiative (ACI) will cease its operations for the Aave DeFi protocol within four months.
- This follows the recent departure of developer group BGD Labs, signaling an internal power struggle.
- The exits stem from governance disputes, including a controversial budget vote backed by Aave Labs.
- ACI’s founder cited the vote as the primary reason for leaving, stating there is “no role for an independent service provider.”
Marc Zeller, founder of the Aave Chan Initiative, announced Wednesday on a governance forum that his firm will wind down its work on the $27 billion lending protocol, Aave, after weeks of escalating tensions. This major exit follows shortly after the departure of the developer team BGD Labs in February, marking a tumultuous period for the decentralized finance giant.
Zeller outlined that the final straw was a crucial governance vote that passed on Saturday. This vote granted Aave Labs, the core development firm, what he called “the largest budget in DAO history.” However, Zeller alleged the vote was backed “almost entirely by crypto addresses linked to the Labs entity.”
Consequently, Zeller concluded, “There is no role for an independent service provider in an environment where the largest budget recipient holds undisclosed voting power and uses it on its own proposals.” Aave Labs CEO Stani Kulechov responded on Tuesday, “We thank Marc for everything he has contributed and wish him well,” adding that the protocol will operate normally during the transition.
The conflict revolves around control between Aave Labs and its decentralized autonomous organization (DAO). In December, a proposal to transfer all of the project’s intellectual property to the DAO failed on Christmas Day. Meanwhile, BGD Labs quit last month over a separate proposal that would have paused development on the current, lucrative codebase.
Zeller told DL News that both departures were “entirely preventable” symptoms of the internal power struggle. As for his next move, Zeller said he is watching what BGD Labs does next, stating, “If they build a protocol, I’ll join.”
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