BGD Labs to End Aave DAO Involvement Amid Governance Rift
BGD Labs, a core technical contributor to the Aave decentralized finance protocol, plans to end its participation in the project’s decentralized autonomous organization on April 1 after four years, according to a post on Aave’s governance forum published Friday.
In the forum update, BGD Labs cited an “asymmetric organizational scenario” and said recent changes within the DAO were “badly executed” without adequately considering contributors’ expertise. The firm also said Aave had taken an “adversarial position” toward the protocol’s third version (v3) to prioritize features planned for the fourth version (v4). BGD Labs added that focusing solely on v3 had become impractical due to implicit or explicit constraints it viewed as artificial.
BGD Labs said its activities would continue unchanged until April 1, including work on v3, Umbrella, chain expansions, security, and asset onboarding. It indicated that ongoing components would include maintenance guidelines after its exit but noted there is no direct off-boarding process for transferring its responsibilities. The firm proposed a two-month, $200,000 security retainer for community consideration beyond April while Aave seeks a potential replacement.
BGD Labs stated it was founded in early 2022 to build within the DeFi/Web3 ecosystem and has since focused almost exclusively on Aave, leading or collaborating on the development of most technical subsystems known to the community.
Aave community reaction
Community responses were broadly supportive of BGD Labs, with several users expressing concern about the departure of a major contributor. One forum participant, JosueMpia, said that if independent contributors feel sidelined by centralization at the DAO level, the solution may be clearer internal structure, adding that the issue appears larger than a single team’s exit.
Some commenters attributed the situation to Aave founder and CEO Stani Kulechov. In a reply on the forum, Kulechov said he respects BGD Labs’ decision and praised the team’s impact on the DeFi ecosystem, adding that he hopes they continue building and contributing to the industry.
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