Aave DAO is voting on a proposal from Aave Labs that could send up to $42 million to the development company to advance Aave V4. The plan has generated significant debate, with critics warning against sidelining the highly successful V3 protocol. Voting concludes Saturday, with a narrow lead for supporters.
Aave DAO delegates are engaged in a pivotal vote on a comprehensive proposal from Aave Labs. The framework, which requests up to $42 million from the DAO’s treasury, aims to fund the development and launch of Aave V4 while establishing a new foundation. This has sparked controversy among delegates concerned about the future of the current, highly successful V3 protocol, which holds over $26.3 billion in user deposits.
The proposal initially included measures to encourage migration from V3 to V4, drawing sharp criticism. Bored Ghosts Developing, a major DAO contractor, stated it would not seek contract renewal, calling the plan for V3 “borderline outrageous.” In response, Aave Labs clarified there would be “no forced migration,” allowing V3 to continue operating indefinitely based on the DAO’s decisions.
A key component is a service provider agreement where Aave Labs would receive $25 million for ongoing development and an additional $17.5 million tied to specific product launches. Prominent delegate Marc Zeller expressed skepticism about the cost, noting it represents 31% of the DAO’s treasury and suggesting the items be voted on separately. The company has also pledged to direct all future revenue from Aave-branded products to the DAO.
Voting is set to conclude soon, with the “aye” votes holding a narrow 52% lead. The outcome will determine the strategic direction and financial relationship between the decentralized autonomous organization and its founding development company. The debate underscores ongoing tensions in decentralized governance between supporting innovation and managing proven, revenue-generating protocols.
