Aave Chan Initiative to Wind Down Over Four Months Following Contentious $42.5M Funding Vote

The Aave Chan Initiative (ACI) plans to end its engagement with the Aave DAO and wind down operations over the next four months, following a closely contested Temp Check vote on the "Aave Will Win" funding proposal that seeks to allocate up to $42.5 million in stablecoins and 75,000 AAVE tokens to Aave Labs. The measure passed with 52.58% support, 42% opposed and 5.42% abstentions, a result ACI said highlighted governance concerns including participation by Labs-linked addresses in voting on their own budget. ACI intends to submit an Aave Improvement Proposal to halt its GHO funding stream, return 120 days of payments to the Aave treasury and reduce its AAVE vesting stream via LlamaPay, while the governance process continues through subsequent ARFC, offchain and onchain AIP stages. AAVE traded around $109 after the announcement, down about 4% in 24 hours, while Aave remains one of the largest DeFi protocols with $26.51 billion in total value locked, DeFiLlama data show.