Aave Governance Vote Fails, Exposing Deep Governance Issues
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Dec 27 2025- Vote Outcome: On December 26, 2025, Aave's governance vote failed decisively with 55.3% against the proposal to transfer brand asset control to a DAO, intensifying tensions over decentralization versus corporate control within the community.
- Fee Flow Controversy: The discovery that Aave's CoW Swap integration was routing approximately $10 million annually to Aave Labs instead of the DAO treasury triggered open confrontation, highlighting the critical need for governance transparency in decentralized finance.
- Process Scrutiny: The vote was rushed to Snapshot after only five days of forum discussion during the Christmas holiday, leading many participants to question the deliberation process and exacerbating the trust crisis within the governance framework.
- Power Dynamics Analysis: Founder Stani Kulechov's purchase of about 84,033 AAVE tokens worth approximately $12.6 million shortly before the vote raised concerns about governance token power dynamics, prompting a deeper reflection on the implications of capital influence in governance decisions.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
