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Aave governance rift deepens as major governance group exits $26 billion DeFi protocol
CoinDeskabout 8 hours ago3 min readT1

Aave governance rift deepens as major governance group exits $26 billion DeFi protocol

Aave governance group Aave Chan Initiative (ACI) is shutting down due to disputes over transparency and voting power. ACI's departure follows BGD Labs' exit, raising concerns about Aave DAO's decentralization and governance structure. Aave Labs proposed a $51 million budget for Aave V4 development, which ACI opposed due to concerns about self-voting. AAVE token is down over 11% in the last 24 hours following the ACI exit announcement.

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