Aave DAO Token Holders Reject Ownership Proposal

TLDR

• 62.76% of votes oppose the ownership proposal.
• Stani Kulechov invested $12.6 million amid voting.
• Proposal could impact AAVE token price and liquidity.

Aave DAO token holders have largely opposed the “Token Alignment Phase 1 – Ownership” proposal. As voting nears its December 26, 2025 deadline, 62.76% of the votes are against the proposal. Only 4.06% are in favor, while 33.18% have abstained.

The proposal was introduced by Ernesto Boado, a former Aave Labs CTO and co-founder of BGD Labs, on December 16, 2025. It aims to transfer control of brand assets such as domains, social media handles, GitHub repositories, trademarks, and naming rights to the DAO.

Key Figures Opposing the Proposal

Stani Kulechov, the founder of Aave, has publicly declared his opposition to the proposal. He criticized it as detrimental to the Aave Protocol, the DAO, and token holders. Kulechov, who founded Aave in 2017, has been an influential figure in developing this DeFi lending solution.

Recently, Kulechov invested $12.6 million in AAVE tokens amid the ongoing vote. This has raised concerns over his potential influence on the process. Aave Labs, now Avara, also opposed the transfer, insisting it is the rightful owner of the brand assets.

Controversy Over CoW Swap Partnership

The dispute involves a $10 million annual fee from the CoW Swap partnership, which critics call “stealth privatization.” The fees currently go to Aave Labs instead of the DAO treasury, drawing criticism from some community members.

Concerns have been raised about the potential impact of the vote on the AAVE token, which has already seen a price drop of 18-22% during this governance battle. The proposal is available for review on the forum discussing the Token Alignment: Ownership Phase 1.

Uncertain Future for AAVE and the DAO

No significant changes in funding, grants, or institutional involvement have been noted. However, the ongoing dispute raises potential risks of liquidity fragmentation and a potential TVL crash if a stalemate or a fork occurs. The affected assets are mainly AAVE tokens, although a fork could further destabilize related DeFi ecosystems.

While no past events are directly referenced, this situation may set a precedent for control dynamics in DeFi governance. Stakeholders remain watchful of future developments in the governance process, as no major regulatory or institutional updates have been reported.