The governance dispute inside Aave has escalated after founder Stani Kulechov said Aave Labs plans to vote against a token alignment proposal put forward by BGD Labs. Voting on the proposal began on Dec. 21.
Kulechov pointed out that continuing with the proposal in its present form could be detrimental to the comprehensive efforts of the whole ecosystem that have lasted for years. Additionally, he cautioned that it would probably have negative effects on the Aave Protocol, the DAO, and AAVE token holders alike.
Moreover, he remarked that the proposal turns an intricate legal and operational problem into a mere yes-or-no vote and does not provide any clear way out. In Kulechov’s view, the problems of this magnitude should not be handled in a hasty manner such as a one-time Snapshot vote, but rather they should go through a structured process with several preliminary votes and a roadmap clearly outlined first.
Aave Founder Rejects Proposal, Citing Process and Governance Risks
On Dec. 18, Kulechov responded on the Aave governance forum, confirming his intention to vote “no.” He stressed that Aave Labs remains fully committed to better communication and open discussion within the DAO.
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Kulechov argued that pushing the proposal forward at this stage could harm the protocol and its community. He said the issue is too complex to be decided through a simple yes-or-no vote and warned it could slow or disrupt long-term progress for the protocol, the DAO, and AAVE holders.
Nevertheless, the proposal was already at the point of Snapshot voting. Boado denounced this action in public, claiming that the proposal had been put forward without him being informed and that there was still community discussion going on. He pointed out that he would not have allowed the vote to take place in its present condition and that he regarded this as a trust betrayal between the community and the leaders.
AAVE Price Drops Due to DAO Vote Indicating Major Dissent
The ongoing governance uncertainty has caused AAVE to experience a drop of nearly 20% in the last week, a decline that is seen by the market as a reflection of concern about the internal dispute.
The proposal began the voting process on Sunday night; however, by early Tuesday, a significant portion of the votes had already been cast against it, with 67% voting NAY and 28% ABSTAIN. So far, less than 3% of those who have voted have shown support for the proposal.
The stance of ABSTAIN is dominated by Aave Chan Initiative, which is a key service provider in Aave DAO. ACI pointed out that the vote had been put forward without the approval of the author of the proposal and that it had been done before the discussions were over. It further stated that a substantial vote should only occur when the discussion is at a more mature stage.
