Aave controversy continues: Labs makes concessions by not forcing migration to v3, $42 million fund proposal leads in voting

ChainCatcher reports that Aave DAO is currently voting on a major proposal that would allocate up to $42 million to Aave Labs, including $25 million for ongoing product development and $17.5 million in milestone bonuses. As of Friday evening, support votes are slightly ahead at 52%, with the voting ending on Saturday.

The controversy centers on Aave Labs' original plan to limit the development of v3 and force users to migrate to the yet-to-be-launched v4. This move sparked strong backlash, with main contractor Bored Ghosts Developing announcing they would not renew their contract and criticizing the proposal as nearly absurd. This week, Aave Labs made a concession, promising not to enforce migration, and v3 will continue to operate.

Critic Marc Zeller argued that the requested funds are excessive, accounting for 31% of the DAO's reserves, and called for splitting the proposal into multiple independent votes. However, Aave Labs insists on proceeding with the overall vote. Currently, Aave v3 has over $26.3 billion in deposits, accounting for more than 97% of the protocol's total deposits.