- Bored Ghosts Developing, a key Aave DAO contractor, will not renew its contract in April after labeling Aave Labs’ proposal as “borderline outrageous.”
- The departure follows internal conflict over Aave Labs’ push to prioritize a new protocol version (v4) over the current, revenue-generating v3.
- The Aave token price fell over 6% on the news, and a major DAO delegate called the loss “devastating” for the ecosystem.
A critical contractor for the world’s largest DeFi protocol, Bored Ghosts Developing, announced its departure on Friday, citing a deepening governance conflict. In a lengthy post, the firm blamed Aave Labs for creating an unworkable situation.
The company specifically objected to Labs’ recent framework that would ratify a newer Aave v4 as the future foundation. Bored Ghosts called the plan to potentially sideline the fully functional v3 engine “borderline outrageous.”
Consequently, the Aave token price fell more than 6% following the announcement. Aave Labs CEO Stani Kulechov acknowledged the firm’s crucial role in building V3.
However, delegate Marc Zeller of the Aave Chan Initiative wrote that the loss was devastating. He credited Bored Ghosts with driving most of the protocol’s current revenue.
The dispute centers on control of the protocol’s direction and its brand assets. Aave DAO delegates have recently challenged Labs’ growing influence within the cooperative.
Meanwhile, Aave Labs has stated there is “zero rush” to migrate users from v3. The company wrote that v3 would be maintained until users moved voluntarily.
Bored Ghosts is currently serving a contract worth $2.2 million in stablecoins and over $300,000 in AAVE tokens. Its work concludes on April 1, though it requested a short-term retainer to aid the transition.
Kulechov asserted that Aave Labs would assume necessary maintenance work seamlessly. He confirmed that all parts of the protocol stack would continue operating normally.
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