AAVE Drops Over 10% as Governance Vote Sparks Volatility
The post AAVE Drops Over 10% as Governance Vote Sparks Volatility appeared on BitcoinEthereumNews.com.
AAVE crashed after a governance proposal on brand-asset ownership was rushed to a Snapshot vote. Senior delegates accused Aave Labs of bypassing the process and pushing the vote. Former CTO Ernesto Boado rejected the vote, saying it was escalated without his consent. A governance dispute within the Aave DAO escalated on Monday after a proposal to govern the protocol’s brand assets was pushed to a Snapshot vote while debate was still ongoing. The proposal asks whether AAVE token holders should regain control over domains, social media accounts, naming rights, and other intellectual property through a DAO-controlled legal structure. The move followed roughly five days of forum discussion. Aave founder Stani Kulechov said the community was ready to decide and that proceeding to a vote would help bring closure. However, several senior delegates and contributors disagreed, arguing that the proposal was rushed and violated established governance norms. Former Aave Labs CTO and BGD Labs co-founder Ernesto Boado, whose name appears on the proposal, said it was escalated without his consent or notice. He publicly dismissed the Snapshot submission and said the discussion was still ongoing when the vote was initiated. Accusations of Process Abuse Marc Zeller of the Aave Chan Initiative said the proposal was unilaterally escalated without resolving outstanding questions raised by delegates and token holders. He warned that advancing the vote during the holiday period would limit participation from large holders and institutional voters, while also reducing the ability to redelegate voting power. We acknowledge @aave unilaterally escalated the proposal to Snapshot without resolving discussion, without clear consensus, and without consent from @eboadom We’ve posted our position in response to this unprecedented interference in the DAO governance process. Worst outcome… https://t.co/80kEpYjikP pic.twitter.com/860GUfavvL — Marc ”七十 Billy” Zeller (@Marczeller) December 22, 2025 Zeller described the move as a hostile takeover…
Filed under: News - @ December 23, 2025 1:25 pm