Aave governance battle precedes major upgrade

Decentralized finance giant Aave is navigating a significant governance debate as it prepares for its v4 upgrade. The core issue revolves around the desired level of decentralization versus coordination within the protocol's ecosystem. Discussions about revenue sharing from front-end interfaces have intensified disagreements about value capture and the influence of major contributors. This internal conflict has led to the departure of key governance groups and development teams, though Aave Labs CEO Stani Kulechov frames these events as a natural evolution. The upcoming v4 upgrade aims to expand Aave's functionality beyond crypto lending into real-world assets and institutional markets.