Bored Ghosts Developing (BGD) will not renew its agreement with Aave DAO when the current term expires on April 1, creating a governance dispute within the Aave community. Aave holds more than $26 billion in user deposits, and the Aave token fell more than 6% following the announcement of BGD’s decision. The dispute has involved proposals over brand and control, including attempts to transfer naming rights, social accounts and the aave.com website, while Aave Labs and leadership have said V3 support and protocol operations will continue.
Bored Ghosts Developing (BGD) has played a significant role in the advancement of Aave v3 and the governance infrastructure of the Aave protocol. Co-founded by Ernesto Boado, who previously served as the chief technology officer at Aave Labs, BGD has been instrumental in implementing key developments such as Umbrella and various core systems within the Aave ecosystem. The contributions of BGD have been pivotal to the structure and functionality of Aave v3, underscoring its importance in the protocol’s evolution. BGD’s expertise has not only enhanced technical capabilities but also supported comprehensive governance infrastructures essential for Aave’s ongoing operations.
The governance dispute within the Aave DAO has focused on attempts by delegates to transfer critical brand assets from Aave Labs to the DAO, including naming rights, social media accounts, and the aave.com website. This proposal, however, narrowly failed to pass. The initiative to shift such significant assets had substantial implications for the control and future direction of Aave’s brand.
Notably, delegate Marc Zeller described the potential transfer as “devastating,” underscoring the tension and divided opinions within the community regarding the governance and management of Aave’s core brand identity.
Aave Labs has confirmed that there is no immediate timeline for the migration of Aave’s protocol to a different operational structure following the non-renewal of Bored Ghosts Developing’s contract. Importantly, Aave v3 will continue to be supported. Stani Kulechov, a prominent figure in the Aave community, addressed concerns by affirming that the protocol will maintain normal operations despite ongoing transitions within the governance framework.
He also emphasized the substantial role that Bored Ghosts Developing (BGD) has played in shaping Aave v3, indicating that its attributes and functionalities would not be what they are today without BGD’s contributions to its development.
The U.S. Securities and Exchange Commission concluded a multi-year investigation into the Aave Protocol and did not recommend any enforcement action. The investigation lasted multiple years before reaching this outcome. The SEC issued no recommendation to pursue enforcement measures against the Aave Protocol. The conclusion was reported as a distinct factual point.
The Aave governance dispute continues following Bored Ghosts Developing’s decision not to renew its contract, with attention concentrated on the contract non-renewal and associated governance matters including control of brand assets and ongoing protocol support. Delegates sought to transfer naming rights, social accounts and the aave.com domain to the DAO while Aave Labs and Aave leadership have stated there is no immediate timeline for migration, that Aave v3 will remain supported, and that the protocol will continue operating normally.
