Aave Governance Rift: ACI and Aave Labs Clash Ahead of $50M Vote
A governance dispute in the Aave ecosystem has intensified after Aave Chan Initiative (ACI) and Aave Labs published competing reports ahead of a planned community vote on a ~$50–51 million funding package. The proposal, framed as “Aave Will Win,” requests up to $42.5M in stablecoins plus 75,000 AAVE tokens (total ~ $50–51M) for Aave Labs in exchange for routing 100% of revenue from Aave-branded products to the DAO treasury and ratifying Aave V4 as the protocol’s long-term technical foundation. ACI founder Marc Zeller released a transparency-style audit questioning Aave Labs’ historical funding (~$86M claimed) and urging ROI-based evaluation, clearer disclosure standards, and separation of funding, revenue alignment and V4 ratification in governance votes. Aave Labs’ rival report defended its multi-year technical contributions (V1–V3, flash loans, Safety Module, Efficiency Mode), warned that counting forum posts understates development and security work, and stressed ongoing R&D to maintain infrastructure for millions of users. Community concerns focus on the funding size, the 75,000 AAVE token allocation (voting power implications), and how revenue and governance holdings are defined. The dispute follows BGD Labs’ announced exit on April 1. Tokenholders will vote after reviewing both reports; the outcome could reshape Aave’s funding model, governance balance and revenue allocation.
Neutral
The dispute is primarily governance and disclosure-focused rather than a technical failure or regulatory shock, so immediate market-moving effects are limited. Concerns about a large funding package and the allocation of 75,000 AAVE tokens create uncertainty around future token supply control and governance voting power, which can increase volatility in the short term as traders react to perceived dilution or centralization risks. Historically, contested governance votes (e.g., MakerDAO or Uniswap governance disputes) produced short-lived price swings and elevated trading volume but not sustained directional trends unless the outcome materially altered token economics or protocol revenue flows. If the vote passes with terms that centralize revenue control or concentrate voting power, longer-term bearish pressure is possible as market perceives governance risk; if it’s rejected or revised toward stronger transparency and checks, that could be neutral-to-bullish by restoring confidence. For traders: expect higher-than-normal AAVE volatility around the Snapshot and vote windows, increased on-chain governance activity, and potential opportunistic moves on news; position sizing and stop management are advised. Monitor vote results, on-chain token transfers, and any follow-up governance proposals for clearer long-term impact.