Aave Service Provider ACI to Exit Protocol in Four Months Amid Governance Dispute

Aave Chan Initiative (ACI) plans to exit the Aave ecosystem in four months, citing concentrated control and lack of transparency by Aave Labs, according to an Aave governance post on March 3. ACI argued there is no room for an independent provider when Aave Labs holds undisclosed voting power and uses it on its own proposals, following a similar move by BGD Labs. Aave Labs CEO and Founder Stani Kulechov said the protocol and incentive programs will continue to operate normally and that the firm will coordinate with other DAO service providers to ensure a smooth transition. The AAVE token fell nearly 10% on March 3, dropping from $127 to a low of $107, while Santiment data show wallets holding between 1 million and 10 million AAVE reduced their positions from 4.7 million AAVE to 2.58 million AAVE since late January.