The post Aave DAO votes down brand control plan as altcoin falls by 14% – Explained appeared on BitcoinEthereumNews.com.

Aave [AAVE] is going through a tough time. A proposal to bring the protocol’s brand and intellectual property under DAO control has failed to gain support. Meanwhile, AAVE’s price slid by nearly 14% this week. There seems to be very little confidence inside the ecosystem. And, one wonders what’s next for one of DeFi’s biggest names. A vote that drew the line The recent governance vote to bring the protocol’s brand and intellectual property under DAO control was decisively rejected. Over 55% voted against and just 3.5% in favor of the same. A large percentage abstained though. Hence, it wasn’t exactly outright opposition. Source: snapshot.org At its core, the proposal sought to shift control of Aave’s domains, social handles, and naming rights away from entities like Aave Labs and BGD Labs and into the hands of token holders. It was understood that this would have been a step towards deeper decentralization and long-term alignment. Alas, for many, the timing, structure, and implications were concerning. AMBCrypto previously reported that Aave founder and CEO Stani Kulechov publicly opposed the proposal. He had claimed that a simple yes/no vote was the wrong way to resolve such a complex issue. This had the community accusing Aave Labs of interfering in DAO governance. Rejection didn’t happen in isolation In the days leading up to the vote, there was anger over how the process unfolded. Some community members pushed back against the decision to move the proposal to a snapshot vote while discussions were still active. Then, attention turned to Kulechov, who reportedly acquired $10 million worth of AAVE ahead of the vote. While not improper on its own, it does bring tough questions about influence and power concentration within token-based governance systems. An uncertain market ahead? After a big drop earlier this month, the altcoin…

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Filed under: News - @ December 27, 2025 11:02 pm