Aave Labs Backs Down on V4 After Community Revolt Over ₱2.42 billion ($42 million) Ask
Aave Labs announced Monday it would not force users to migrate from v3 to v4, reversing course after major DAO delegates and contractors publicly opposed the move. The reversal follows a ₱2.42 billion ($42 million) funding request that sparked rare dissent among the protocol's biggest power brokers.
Key Takeaway
When your biggest contractors call you outrageous, even a $26 billion protocol has to listen.
Aave Labs told its community Monday that it would not force users to migrate from v3 to v4, backing down from an aggressive timeline that sparked rare public fury among the protocol's biggest power brokers.
The reversal came days after voting began Wednesday on a proposal that would send Labs up to ₱2.42 billion ($42 million) from the DAO treasury. Delegate Marc Zeller called the request far too high, saying it represented 31% of the DAO's war chest. He pushed Labs to break its asks into separate votes where each stands on its own merits.
Bored Ghosts Developing, a major contractor founded by a former Labs executive, went further by calling the payment proposal borderline outrageous and announced it would not seek contract renewal.
The protocol holds ₱1.52 trillion ($26.3 billion) in user deposits, with 97% sitting in v3 according to DefiLlama data. That version has generated ₱10.62 billion ($184 million) in revenue since launching in 2022. Labs now says v3 is battle-tested and will continue operating as a core part of the ecosystem for as long as the DAO decides it should.
The funding request includes $25 million for ongoing product development and another $17.5 million payable when specific products launch. Labs also wants to start sending revenue from its aave.com interface back to the DAO after the community learned in December that the company had ended that practice. The vote stood at 52% in favor as of Friday evening, with voting set to end Saturday.
This article was written based on reporting from Dlnews.
