<div id="readability-page-1"><div>The Aave Chan Initiative (ACI), a leading service provider for the Aave DAO, will exit the DAO by July, marking the second high-profile departure in recent days as governance tensions within Aave continue to build.&#34;ACI will not seek renewal of its engagement with the Aave DAO,&#34; ACI founder Marc Zeller said in a post shared exclusively with The Block on Tuesday. &#34;ACI will wind down over four months. We will continue governance activity, implement outstanding Skyward commitments, and focus on infrastructure handoff and transition.&#34;The departure comes shortly after BGD Labs, a core technical contributor to the Aave DeFi protocol, said on Feb. 20 that it will cease contributing to Aave when its contract ends in April, citing disagreements over direction and governance dynamics.“The main spark is BGD leaving,” Zeller told The Block when asked about the primary reason behind ACI’s decision to step away amid recent developments in the Aave governance dispute.The Aave governance disputeThe Aave governance dispute began in December when a community member known as EzR3aL questioned why fees from a new CoW Swap integration were being routed to Aave Labs rather than the DAO treasury. The change had not been preceded by a governance vote or formal announcement, prompting concerns about revenue being diverted away from token holders. The discussion quickly escalated into heated forum debates, calls for greater transparency, and volatility in the AAVE token.The fee controversy widened into a broader debate about control and accountability. BGD Labs proposed transferring control of Aave’s brand assets — including domains, trademarks, and social accounts — to the DAO to prevent future revenue diversions. Aave Labs escalated the matter to a Snapshot vote during the holiday period, but the proposal failed amid abstentions and opposition, including from Aave founder Stani Kulechov.In January, Kulechov published a post titled &#34;How AAVE will win,&#34; outlining a new framework that included partial revenue sharing from non-protocol products. The discussion evolved in February into a formal temp check proposal from Aave Labs.The proposal offered to redirect 100% of revenue from Aave-branded products — including the frontend app, swaps, Aave Pro, and the Aave Card — to the DAO treasury in exchange for around $51 million in funding. The package included stablecoins and 75,000 AAVE tokens to support development of Aave v4, which is currently live on testnet. Initial language suggesting a stronger push to migrate from v3 to v4 was later softened following community feedback.Zeller subsequently published what he described as an accountability review or &#34;audit&#34; of Aave Labs, citing roughly $86 million in historical funding and raising questions about transparency and return on investment.The &#34;How AAVE will win&#34; temp check ultimately passed with 52.58% voting in favor. Zeller argued that the outcome hinged on voting power linked to Aave Labs. He claimed that excluding roughly 233,000 AAVE from three address clusters he described as Labs-linked — including a 111,000 AAVE delegation from Kulechov — would have reversed the result to approximately 497,100 NAY versus roughly 387,000 YAE.The temp check &#34;demonstrated that a single entity holds enough voting power to pass its own budget proposals over community opposition,&#34; Zeller said in the shared post. &#34;That same voting power could cancel any active stream at any time. We don't consider the current governance process decentralized enough to guarantee that existing commitments will be honored.&#34;ACI stream settlementAs ACI prepares to leave the Aave DAO, it is also seeking to cancel its GHO stablecoin funding stream (ID 100070) on the Aave Collector ahead of schedule. The proposal requests the transfer of 120 days’ worth of the stream to ACI's treasury, with the remaining balance returning to the Aave Collector. ACI’s contract and funding stream were originally set to run through Nov. 8, 2026.&#34;Converting the stream to a lump sum is the only way to ensure ACI can deliver a seamless transition without depending on a process where the outcome is controlled by one party,&#34; Zeller said in the post.He added that if the DAO rejects the proposal, ACI would treat it as a signal that the protocol does not intend to honor its commitments. &#34;In that case we'll cease all activity immediately, cut our own stream and consider our obligations terminated,&#34; Zeller said.&#34;That's not the outcome we want. We're professionals. We want a graceful wind-down that benefits Aave users and leaves every system we built in good hands. This AIP makes it possible,&#34; he added.Zeller also wished remaining Aave service providers — Chaos Labs, TokenLogic, LlamaRisk, and Certora — well in his departure note.Founded in early 2023, ACI operated with eight members and received a total of $4.625 million in compensation over three years, Zeller said. He declined to comment when asked about his future plans.Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.© 2026 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice. </div></div>

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The Aave Chan Initiative (ACI) will exit the Aave DAO by July due to growing governance tensions, following BGD Labs' announcement to cease contributions. ACI founder Marc Zeller cited disagreements over control and accountability as key reasons for the departure. The governance dispute began in December over fee routing issues, escalating into debates about transparency and voting power. ACI plans to cancel its GHO stablecoin funding stream early, seeking a smooth transition. Zeller emphasized the need for a graceful wind-down that benefits Aave users.

- The Aave Chan Initiative (ACI) will exit the Aave DAO by July, following recent governance tensions signified by BGD Labs' departure.  
- Issues arose regarding fee distributions and control over Aave's assets, leading to community disputes and a controversial vote on funding and governance.  
- ACI seeks to convert its funding stream into a lump sum for a smooth transition, emphasizing the need for accountability and transparency within the DAO’s governance.

Marc Zeller’s ACI to leave Aave in July amid growing governance tensions