Aave Chan Initiative exits DAO amid governance crisis

Aave Chan Initiative is leaving Aave DAO after disputes over governance transparency and voting, deepening the protocol's governance crisis.

The Aave Chan Initiative (ACI), a major governance group within the Aave DAO, has announced it will wind down operations and exit the protocol over the next four months. This decision comes amid claims of structural breakdowns in the DAO's governance process. ACI's departure follows a dispute over a record budget request from Aave Labs. The group alleges that voting was dominated by addresses linked to Aave Labs, raising concerns about transparency and accountability. Over the past three years, ACI was responsible for 61% of governance actions and contributed to nearly half of the protocol's revenue strategies, deploying over $100 million in incentives. The exit comes shortly after BGD Labs, another key contributor, also announced its departure due to organizational disagreements. These developments have intensified governance turmoil within Aave, causing a significant drop in the AAVE token price and raising concerns about the protocol's future governance structure.