The Aave Chan Initiative (ACI), one of the largest delegated service providers in the Aave governance ecosystem, has announced it will wind down its engagement with the Aave DAO and depart the protocol over the coming months, marking a significant escalation in ongoing governance tensions.

In a governance forum post published March 3 by Marc Zeller, founder of ACI, the organization confirmed that it will not seek renewal of 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 breakdowns in the governance process.

ACI said its work included driving 61% of all governance actions, revenue strategies responsible for nearly half of the protocol’s income, and over $100 million in incentives deployed over three years.

Governance Accountability and Structural Concerns

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 transparency and accountability standards to the largest budget request in DAO history.

“We spent three years building a culture of accountability inside the Aave DAO… When we applied those same standards to the entity requesting the largest budget in DAO history, the system stopped working,” Zeller said.

In a separate post, he argued that the “Aave Will Win” Temp Check vote cleared its preliminary stage thanks to Aave Labs–linked voting power, even as most other tokenholders had rejected the proposal.

ACI’s departure follows a broader debate inside the Aave community over revenue allocation, service provider roles, and the balance of power between independent delegates and core contributors such as Aave Labs. ACI’s exit escalates that debate, particularly as other major contributors like BGD Labs recently announced plans to leave by April 2026 amid governance friction.

Transition and Handover

Despite announcing its exit, ACI said it will ensure a “graceful transition” of its systems and tools to the DAO before its contract expires. This includes handing off governance infrastructure, documentation for incentive programs, and ongoing commitments.

ACI also plans to submit a governance proposal to cancel its existing GHO revenue stream and transfer the remaining vesting to the DAO treasury to ensure continuity after departure.

Implications for Aave

ACI’s departure represents a rare and notable exit from the ecosystem by a delegate that has historically played a central role in shaping protocol strategy, incentive design, and governance tooling. Its exit, coupled with other service provider changes, may force the wider DAO to reassess how it structures governance oversight and balances power among contributors.

As the DAO prepares for next phases of major proposals and technical upgrades, ACI’s winding down adds pressure to ongoing debates about decentralization, accountability, and the future of Aave’s governance model.