Aave Chan Initiative (ACI), the primary service provider for Aave DAO, will wind down operations and exit the decentralized autonomous organization by July, marking an escalation in internal governance disputes within the lending protocol.
ACI's departure follows mounting disagreements with Aave Labs, the core development team behind the protocol. The split underscores deepening friction over strategic direction and decision-making authority within Aave's governance structure, which has been strained by competing visions for the protocol's future management and resource allocation.
The exit of ACI, which has served as a key operational and service layer for Aave DAO, may force the organization to restructure its governance and service delivery mechanisms. The move signals broader challenges in decentralized governance models where independent service providers and core development teams operate within the same ecosystem, potentially complicating Aave's operational continuity during the transition period.