He was the main technical contributor to the termination of participation in Aave DAO.
BGD Labs, the main technical contributor to the decentralized financial protocol Aave, said it will end its involvement with the project's DAO on April 1 after four years.
In a Friday forum post on Ave, BGD cited an “asymmetrical organizational situation,” which he said the DAO “executed poorly” without taking into account contributors' expertise. The announcer added that Ave has taken the “opposite position” of the third version of its protocol (v3) to introduce the features in the fourth (v4).
“All previous points that BGD should only continue to contribute to v3 make the situation pointless for us: every time we consider upgrading to v3 there will be some sort of implicit/obvious artificial limitation,” he said. We don't want to be in that position because we think it's a waste of our resources.
As part of the decline in collaboration with Aave, BGD said “nothing will change” as of April 1, and the project will continue to contribute to v3, umbrella, chain expansions, security and asset onboarding.
Projects that may continue after the end of contributions will have maintenance guidelines, but BGD says there is no “direct off-boarding” the project will contribute to the Aave protocol. Aave has proposed a two-month, $200,000 security deposit for the community after April while it finds a replacement.
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“BGD Labs was created to build in the DeFi/web3 ecosystem by early 2022,” the forum post said. “Since then, we've only focused on our contribution to Aave: any Aave technical subsystem that the community knows about, BGD Labs has been leading the development of, or at least participating/collaborating with other entities within it.”
Aave users respond to the rise of BGD
Many users' reaction to the news was mostly positive for BGD, with many expressing concern about losing a significant contributor to the DeFi protocol.
“If independent contributors feel marginalized by DAO-level centralization, perhaps the only answer is structural transparency in the DAO,” said user JosueMpia. Because this sounds like more than one group.
Some users have accused Aave founder and CEO Stani Kulekov of being responsible for the project's demise. The CEO responded to the article:
“I respect BGD's decision, I'm sad to see them go, the DeFi ecosystem is better off with a team like BGD in it and I hope they continue to build and contribute to the industry.”
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