Aave Labs backtracks on plan to sideline v3 in the DAO vote (v3 vs v4), with Labs saying it will not force users to migrate to v4 and having relaxed its aggressive timeline ahead of the delegate vote. Aave holds more than $26.3 billion in user deposits, and v3 accounts for more than 97% of those deposits. As of Friday evening, aye votes held a 52% lead in the ongoing DAO vote.
Aave Labs backtracks on plan to sideline v3 in the DAO vote (v3 vs v4)
Aave DAO delegates are voting on a proposal that would sideline v3 in favor of v4 while aligning the protocol around V4 as the strategic direction. Aave Labs relaxed its previously aggressive timeline for moving users to v4 before the delegate vote began, and the timeline is explicitly described as still being under discussion. The proposal places emphasis on signaling support for V4, while the timing and mechanics of any transition remain subject to DAO deliberation. “While we think it is important for the DAO to align strategically behind V4 as part of this proposal, the timeline is up for discussion,” the proposal text states.
Aave Labs described v3 as a battle-tested protocol and stated it would remain operational as long as the DAO decides it should. The Labs team also announced that it would not force users to migrate to v4, stating plainly, “There will be no forced migration.” The documentation further clarifies that if a V3 market serves a particular chain or ecosystem well, “the DAO has the authority to keep it running indefinitely,” and that V3 and V4 can coexist while each “stands on its own merits.”
Aave Labs backtracks on plan to sideline v3 in the DAO vote (v3 vs v4)
Aave Labs proposed directing all revenue from Aave-branded products to the Aave DAO and suggested creating a foundation to own and defend Aave trademarks. The proposal includes a service provider agreement with the DAO that would allocate $25 million for ongoing product development and an additional $17.5 million payable upon the launch of specified products. The governance package references that Aave has generated $184 million in revenue since its launch in 2022, framing the proposed revenue allocation and contractual payments within the protocol’s recent earnings record. Those financial and governance measures are bundled in the proposal being voted on by DAO delegates.
The proposal also notes that Bored Ghosts Developing will not seek renewal of its contract this year. Delegate Marc Zeller criticized the proposed payments as excessively large and stated the total asked would amount to 31% of the DAO’s war chest, and he recommended splitting the funding requests into multiple separate votes. These criticisms and procedural suggestions were presented as part of the DAO discussion around the proposed financial and governance changes.
Aave Labs backtracked on its initial plan to sideline v3 in favor of v4, and the proposal remains subject to an ongoing DAO vote. Labs relaxed its previously aggressive migration timeline, and that timeline is still under discussion among delegates. The vote also covers related financial and governance proposals, including directing revenue from Aave-branded products to the DAO, creating a foundation for trademark ownership and defense, and a proposed service provider agreement, all of which remain under consideration by delegates.
