$AAVE Aave Governance Crisis Erupts: Discrepancies Between DAO and Aave Labs Widen, Founder Accumulation Sparks Controversy

In December 2025, the leading DeFi lending protocol Aave fell into a fierce governance storm. The core conflict focused on brand asset control, revenue distribution, and the power boundaries between the DAO and the development entity Aave Labs. This incident not only triggered a community split but also led to a short-term drop of over 10% in the price of AAVE tokens, accompanied by significant sell-offs. #加密市场小幅回暖
Crisis Origin: The Shift in Front-End Revenue Sparks Controversy
The turmoil originated from Aave Labs switching the front-end token swap integration from ParaSwap to CoW Swap in early December. This move redirected the token swap fees (approximately $10 million annually) that would have originally flowed to the DAO to a wallet controlled by Labs. Community representatives, such as Marc Zeller, the founder of the Aave Chan Initiative, referred to this as "invisible privatization," arguing that Labs is extracting value from the DAO-funded brand and infrastructure without going through governance voting.
Aave Labs and founder Stani Kulechov defended that the front-end revenue originally belonged to Labs as private property, and the previous "donation" to the DAO was only due to regulatory uncertainty, not an obligation. Labs emphasized its responsibility for front-end maintenance, custody, and security expenses, while the DAO controls the core revenue of the protocol (over $100 million annually).
Brand control becomes the focus
The dispute quickly escalated to the ownership of brand assets. Ernesto Boado, co-founder of BGD Labs, proposed a plan to transfer the domain name, social media accounts, trademarks, and naming rights to a legal entity controlled by the DAO, and to establish a capture prevention mechanism. This proposal aims to clarify the DAO's sovereignty over the brand and to prevent Labs from unilaterally "privatizing" the community's co-created value.
On December 22, Aave Labs unilaterally moved the proposal to the Snapshot voting phase, with the voting period ending on December 26 (Christmas holiday). Boado publicly stated that he did not agree with this move, claiming it "destroys community trust" and is being rushed. Marc Zeller criticized the timing of the vote during the holiday, intending to reduce participation. Stani responded that they had discussed for 5 days, which is in line with the governance framework, and called for resolving the issue through voting.
Extremist voices have emerged in the community, suggesting a "poison pill" proposal for the DAO to completely absorb Aave Labs and recover historical revenue, but it has not gained mainstream support.
Founder Stani's large increase in holdings raises questions.
In the midst of the crisis, Stani Kulechov recently purchased 32,660 AAVE for approximately $5.15 million (1,699 ETH), increasing his total holdings to 84,033 AAVE (worth about $12.6 million), with a current unrealized loss of about $2.29 million. Some voices in the community question whether this move is aimed at expanding voting power influence, further intensifying concerns about the ownership of governance rights. Stani has previously publicly stated that his team is one of the largest holders of AAVE and emphasized their long-term commitment to the protocol.
Market reaction: prices plummeted, sentiment is bearish.
Governance disputes directly impact the market. AAVE tokens fell about 10-15% in the short term, touching around $150 at one point, accompanied by large whale sell-offs (for example, one address liquidated over $37 million in AAVE). Discussion heat on social platforms surged, and panic spread. Some holders are calling for the DAO to gain greater authority to ensure alignment of interests between the team and the community.
Well-known crypto KOL Wazz commented that this round of decline may provide a buying opportunity. If governance does not have further negative impacts, one might consider accumulating at lower levels; however, if there is continuous large-scale selling pressure, it will be necessary to stop losses. Overall market sentiment is bearish, and there are short-term speculative rebound opportunities, but caution is needed regarding the uncertainty of voting results during the holiday.
Outlook: The Contest of DeFi Governance Paradigms
This crisis exposes the pain points of the DeFi hybrid governance model: the DAO controls the on-chain protocol, but off-chain assets such as branding and interfaces are often held by centralized teams. Aave, as a leader with a TVL exceeding $30 billion, will set a precedent for the entire industry. If the proposal passes, the power of the DAO will be significantly enhanced; if rejected, it will strengthen Labs' control over the distribution layer.
Regardless of the outcome, this event serves as a reminder to the community: the value of governance tokens ultimately depends on the clarity and enforcement of power boundaries. If Aave can stabilize the situation, it may restore confidence; otherwise, short-term volatility is likely to persist. Investors should closely monitor the progress of Snapshot voting and assess risks rationally. #2025Gate年度账单