BGD Labs is announcing its departure from the Aave ecosystem after four years of active participation in the development and growth of the Aave protocol. The team, which holds an integral place within the Aave DAO structure from a technical perspective, shared a retrospective on their contributions and the reasoning behind the decision to leave the ecosystem.
A Four-Year Role in Aave’s Development
BGD Labs was founded in early 2022, and its primary objective was to build in the DeFi/Web3 space. Since its inception, the company has been heavily involved in the altcoin, being one of the core technical contributors to its infrastructure.
BGD Labs has over the years been at the forefront of the development of various technical aspects of the Aave protocol. The organization’s contribution to the protocol can be seen in the development of various technical aspects, including upgrades, governance, risk parameters, and optimization.
BGD Labs’ contribution to the altcoins protocol can be seen in the development of Aave v3, which the community considers a landmark for the protocol.
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Commitment to Decentralized Governance
BGD Labs has been built on a belief in the importance of organizational decentralization. Indeed, in the proposal to the DAO in 2022, the BGD Labs team outlined their plan to be a self-sufficient service provider, as opposed to a central organization. The altcoins community approved the proposal for the scope of work, as well as the renewal of the mandate.
During this time, Aave DAO’s service provider concept was further expanded to encourage even more external and independent contributors to take part in the development and maintenance of the protocol.
This development was consistent with the initial vision of BGD Labs of a decentralized system where there were various entities to support the protocol, rather than a centralized development entity.
Reasons Behind the Exit
Although the reason for the exit of BGD Labs has not been described as a dispute, the implication from the announcement is that it is a natural progression from years of heavy contribution. The retrospective also reflects on the maturity of the altcoins governance model and the diversification of contributors.
After addressing the initial product shortcomings and helping to stabilize and expand the protocol’s technical framework, BGD Labs stated that its initial mission within the altcoin had been largely fulfilled. The decision to exit seems to align with the broader move toward new priorities and opportunities within the decentralized finance space.
Implications for Aave DAO
The exit of a long-time technical contributor can be considered a major change for the DAO. The protocol has also evolved to comprise various entities, all of which are supported by different service providers that offer development, risk management, and facilitation services.
The altcoins system, which has a DAO-based structure, ensures that there is no break in continuity even as individuals leave or exit. The community has control over all proposals, upgrades, and service provider engagements, which eliminates dependence on any single entity. The transition, therefore, would be operational rather than disruptive.
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