Aave controversy continues: Labs makes concessions by not forcing migration to v3, $42 million fund proposal leads in voting

ZkProver · 2026-02-28T04:08:14+00:00

Aave DAO is voting on a proposal to allocate up to $42 million to Aave Labs for product development and milestone bonuses. The proposal has sparked controversy, with opponents arguing that the funding request is excessive and calling for a split vote. Currently, support votes are slightly ahead, and Aave Labs has pledged not to force users to migrate to version 4.

ZkProver

2026-02-28 04:08:14

Abstract generation in progress

ChainCatcher reports that Aave DAO is currently voting on a major proposal that would allocate up to $42 million to Aave Labs, including $25 million for ongoing product development and $17.5 million in milestone bonuses. As of Friday evening, support votes are slightly ahead at 52%, with voting ending on Saturday.

The controversy centers on Aave Labs’ original plan to limit the development of v3 and force users to migrate to the not-yet-launched v4. This has sparked strong backlash, with main contractor Bored Ghosts Developing announcing they will not renew their contract and criticizing the proposal as nearly absurd. This week, Aave Labs made a concession, promising not to enforce migration, and v3 will continue to operate.

Critic Marc Zeller argues that the requested funds are excessive, accounting for 31% of the DAO’s reserves, and has called for splitting the proposal into multiple independent votes. However, Aave Labs insists on proceeding with a single vote. Currently, Aave v3 deposits exceed $26.3 billion, accounting for over 97% of the protocol’s total deposits.

AAVE-8.23%

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