Aave's Internal Conflict Suffers First Loss as Prominent Developer Exits

Governance Rift Intensifies

Core developer Bored Ghosts Developing (BGD) announced it will not renew its contract with Aave DAO after April, deepening a long‑standing dispute with Aave Labs. The split revolves around Labs’ push to migrate users from the fully operational v3 to the upcoming v4 upgrade. BGD warned that supporting v3 while encouraging migration is “borderline outrageous.”

Market Impact

The news sent the AAVE token down more than 6% in a single day. Founder Stani Kulechov praised BGD’s past work but noted the loss, while delegate Marc Zeller called it “devastating” for revenue. A recent DAO vote to transfer brand assets from Labs to the DAO had narrowly failed, heightening the clash.

Aave Labs Response

Aave Labs said v3 will stay supported with no urgent migration deadline and can take over maintenance if needed. However, the Labs’ revenue‑sharing offer is tied to recognizing v4 as the protocol’s future core, a clause that unsettled BGD. BGD proposed a short‑term transition to aid the DAO in finding a new developer.

Regulatory Closure

The U.S. SEC concluded its multi‑year probe of the Aave protocol without recommending enforcement, ending years of regulatory uncertainty. Aave still holds over $26 billion in deposits, remaining the largest DeFi lending platform amid the governance turmoil.