The Aave Chan Initiative (ACI), one of the largest delegated service providers in the Aave governance ecosystem, has announced that it will be winding down its involvement in the Aave DAO in the coming months and exiting the protocol, marking a significant escalation in ongoing governance tensions.
In a board forum post published on March 3 by ACI founder Marc Zeller, the organization confirmed that it will not seek to renew its contract with Aave DAO and will begin a four-month wind-down of operations with a focus on transferring infrastructure and responsibilities back to the DAO or successor teams.
“The Aave Chan Initiative was built for Aave. Without a future in the Aave ecosystem, the name no longer applies,” Zeller wrote, explaining that the decision stems from what he sees as structural failures in the governance process.
ACI said its work included directing 61% of all governance actions, revenue strategies responsible for nearly half of the protocol’s revenues, and more than $100 million in incentives deployed over three years.
Board accountability and structural problems
In his statement, Zeller cited a series of events that undermined ACI’s ability to operate effectively, including what he characterized as a governance process that failed to apply consistent standards of transparency and accountability to the largest budget request in DAO history.
“We spent three years building a culture of accountability within the Aave DAO… When we applied the same standards to the entity that requested the largest budget in the history of the DAO, the system stopped working,” Zeller said.
In a separate post, he argued that the “Aave Will Win” Temp Check vote had reached its preliminary stage thanks to the Aave Labs-linked voting rights, even as most other token holders had rejected the proposal.
ACI’s departure follows a broader debate within the Aave community over revenue allocation, the role of service providers, and the balance of power between independent delegates and core contributors like Aave Labs. ACI’s departure escalates that debate, especially as other major contributors such as BGD Labs recently announced plans to leave by April 2026, amid governance friction.
Transition and transfer
Despite announcing his departure, ACI said it will ensure a “graceful transition” of its systems and tools to the DAO before the contract expires. This includes transferring governance infrastructure, incentive program documentation and ongoing obligations.
ACI also plans to submit a board proposal to discontinue the existing GHO revenue stream and transfer the remaining acquisition to the DAO treasury to ensure continuity after departure.
Consequences for Aave
ACI’s departure represents a rare and notable exit from the ecosystem by a delegate who has historically played a central role in shaping protocol strategy, incentive design and governance tools. Its departure, coupled with other changes in the service industry, could force the broader DAO to reassess how it structures governance oversight and balances power among contributors.
As the DAO prepares for the next phases of major proposals and technical upgrades, ACI’s phase-out heightens ongoing debates over decentralization, accountability, and the future of Aave’s governance model.