Dispute at Aave intensifies ahead of $51 million vote.

• Aave's governance enters a dispute for record funding.
• Audit questions spending and transparency at Aave Labs.
• Token holders analyze “Aave Will Win” proposal

The governance of the Aave decentralized finance protocol has entered a new phase of tension following the publication of a Critical audit by the Aave Chan Initiative, led by Marc Zeller. The document was released shortly before a vote on a proposal that could unlock up to $51 million in funding for Aave Labs.

The analysis was presented as a review of the history of deliverables, costs, and returns associated with the development team. According to the publication, Labs received approximately US$86 million over the years, including funds from the 2017 ICO, venture capital rounds, direct payments from the DAO, and fee income that, according to ACI, did not undergo formal approval.

"With the release of the $51 million 'Aave Will Win' investment proposal report tomorrow, check out our audit of Aave Labs' performance and the approximately $86 million in funding they have received to date."

wrote the initiative in publication in X.

Among the main criticisms is the claim of a lack of a detailed accountability report, with a clear distinction between expenses and results. The document also questions financial transparency and states that token holders should evaluate the track record before approving the largest funding request ever submitted to the protocol.

The audit paid special attention to the Horizon project, which focuses on real-world assets (RWAs). Although the market shows high supply volumes, the analysis suggests that effective activity is more concentrated than it appears. On-chain data would indicate a strong reliance on stablecoins, concentration among a few users, and the predominance of a single asset among RWAs.

Another point raised involves the economic efficiency of the project. According to the estimate presented, the accumulated revenue of the DAO on the Horizon collector would be close to US$216, while incentives and operating costs would total millions, resulting in an approximate profile of "US$24 spent for every US$1 earned".

The report also reopened discussions about the flow of fees on the aave.com interface. The publication states that approximately US$5,5 million in partner revenue was redirected following integration changes, without a governance vote.

The criticism comes at a delicate time for the ecosystem, which is already facing debates about decision-making power and the distribution of incentives. Tensions have increased following the announcement of the departure of BGD Labs, the main engineering team responsible for much of the recent updates, scheduled to occur after their contract expires in April.

As the “Aave Will Win” proposal moves toward a vote, the community is analyzing the data presented and the history of contributions, in a process that could influence the direction of governance and the operational structure of the protocol in the coming years.