A governance dispute within the Aave ecosystem has escalated after two competing reports presented sharply different views on protocol funding, development contributions and accountability standards. The disagreement comes as tokenholders prepare to vote on the “Aave Will Win” framework, a proposal that could allocate up to $42.5 million in stablecoins and 75,000 AAVE tokens to Aave Labs.
In exchange, Aave Labs would transition to a DAO funded operating model and direct 100% of revenue from Aave-branded products to the DAO treasury. The proposal also includes ratification of Aave V4 as the protocol’s long-term technical foundation.
ACI and Aave Labs Publish Competing Reports
Marc Zeller, founder of the Aave Chan Initiative (ACI), released a transparency report reviewing Aave Labs’ historical funding, estimating lifetime capitalization at approximately $86 million, including its 2017 ICO, venture funding and DAO grants. Zeller argued future funding should be tied to measurable revenue impact and clearer reporting standards.
Aave Labs countered with its own contributions report, outlining its role in developing Aave V1, V2 and V3, as well as core features such as flash loans, the Safety Module and Efficiency Mode. The firm maintained that governance activity alone does not capture the full scope of technical development and infrastructure maintenance.
Governance Accountability and Community Concerns
The debate has expanded to broader issues, including revenue attribution, infrastructure responsibility and governance transparency. It follows the announcement that BGD Labs will conclude its involvement with the DAO in April.
With voting power attached to the proposed AAVE token allocation, community members are calling for clearer revenue definitions and stronger accountability measures before approving the funding package.
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