Aave controversy continues: Labs makes concessions by not forcing V3 migration, $42 million fund proposal leads in voting

MarsBitNews · 2026-02-28T03:18:22+00:00

Aave DAO is voting on a proposal to allocate up to $42 million to Aave Labs, but it has sparked controversy over the forced migration of users to version 4. Although Aave Labs has made concessions by not requiring migration, critics remain dissatisfied with the funding request and the proposal process. Currently, Aave v3 deposits have reached $26.3 billion.

MarsBitNews

2026-02-28 03:18:22

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Mars Finance 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 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 will not renew their contract and criticizing the proposal as nearly absurd. This week, Aave Labs made a concession, promising not to force 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, but Aave Labs insists on proceeding with the overall vote. Currently, the deposit size of Aave v3 exceeds $26.3 billion, accounting for over 97% of the protocol’s total deposits.

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