The legitimacy of the Aave governance vote is being questioned: ACI founder and BGD Labs raise successive objections

Aave’s “Aave Will Win” proposal narrowly passed the initial vote with 52.58% on March 1, and immediately afterward, debates over the protocol’s legitimacy have rapidly intensified. The proposal appears simple at first glance, but questions arising from the voting process are prompting a reevaluation of the essence of decentralized governance.

Doubts About the Legitimacy of the Voting Results: Marc Zeller Points Out Delegated Voting Influence

According to Cryptopolitan, Aave founder Marc Zeller raised objections immediately after the vote. His concerns about legitimacy are very specific. Zeller states that it is unclear what proportion of the approximately 233,000 tokens cast in the vote came from addresses associated with Aave Labs. Notably, 111,000 tokens were delegated from Co-Founder Stani Kulechov. Zeller argues that if these delegated votes are excluded, the proposal would not have actually passed.

Numbers Tell a Power Story: Issues with the Delegated Voting Mechanism

This objection is more than just about numbers. The fact that a single founder delegated 111,000 tokens out of 233,000 highlights the concentration of power within Aave’s governance. Delegated voting is meant to allow token holders to entrust their voting power to representatives, but the legitimacy of this process depends on whether voting power is sufficiently dispersed. The narrow 52.58% approval suggests that a small shift in votes could change the outcome.

BGD Labs Declares End of Cooperation: Underlying Organizational Imbalance

The situation has become even more complex. BGD Labs, a key technical contributor to Aave V3, announced on April 1 that it would cease cooperation with AaveDAO. The reason cited is issues of centralization within Aave Labs and organizational imbalance. This announcement demonstrates how serious the cracks within the organization are, stemming from questions about the voting process’s legitimacy. BGD Labs’ withdrawal could also impact the protocol’s technical continuity, indicating a situation far beyond internal disputes.

The Legitimacy of Aave Governance Is Being Tested

The current controversy over the “Aave Will Win” proposal is not just about a single vote result but raises fundamental questions about the governance structure of decentralized autonomous organizations (DAOs). Marc Zeller’s objections and BGD Labs’ withdrawal highlight the need for transparency and decentralization in decision-making processes. As of March 23, AAVE trades at $110.70, up 4.45% in 24 hours, but the long-term impact of this governance turmoil on the token remains uncertain.