AAVE Governance Crisis: 50M$ Fund Controversy

Two Reports in AAVE Governance Dispute

The governance dispute in the Aave ecosystem has intensified with two opposing reports ahead of the vote on the proposed $50 million funding package for Aave Labs. Marc Zeller, founder of Aave Chan Initiative (ACI), published a transparency report examining Aave Labs’ historical funding and argued that DAO grants should be evaluated using a return-rate-impact framework. Hours ago, Aave Labs shared a contributions report highlighting its role in protocol development since 2017. The discussion revolves around the “Aave Will Win” proposal: seeking approval from token holders for 42.5 million stablecoins and 75,000 AAVE tokens. In return, Aave Labs will direct revenues from Aave-branded products to the DAO treasury and transition to a DAO-funded operations model.

The dispute extended to funding size, accountability standards, revenue attributions, and infrastructure maintenance. According to Zeller’s report, Aave Labs received a total of $86 million in capital from ICO, venture capital, and DAO payments. ACI proposed separating votes for funding, revenue alignment, and V4 approval. Aave Labs highlighted V1, V2, V3 versions, flash loans, Safety Module, and Efficiency Mode. BGD Labs will depart from the DAO on April 1. There are concerns in the community about the funding size and the voting power of the 75,000 AAVE tokens. This discussion is critically important for AAVE detailed analysis.

Source: Marc Zeller
Source: Stani Kulechov

AAVE Technical Outlook and Price Analysis

AAVE price at 116.90 USD level, up +3.19% in the last 24 hours. RSI at 42.69 in neutral zone, overall trend downward (Downtrend), Supertrend giving bearish signal. EMA 20: 121.6482 USD. Supports: S1 116.8420 (strong, 74% score), S2 108.1098. Resistances: R1 136.1433 (strong, 80% score), R2 118.1065. Investors should monitor these levels for AAVE futures. The voting outcome could increase price volatility.