Controversy Erupts Over Aave Governance Vote on Brand Asset Ownership

In a recent governance vote at the decentralized finance (DeFi) lending protocol Aave, strong reactions emerged from key stakeholders following a proposal regarding the ownership of Aave's brand assets. This proposal was quickly escalated to a Snapshot vote, despite ongoing discussions that had yet to be fully resolved.

Key Takeaways

A governance vote regarding Aave's brand assets has sparked significant backlash from the community.
The proposal seeks to return control of brand assets to Aave token holders.
Accusations of a "hostile takeover" have surfaced amid claims of improper voting procedures.
Critics argue that the vote was rushed, limiting community input and participation.
Aave founder Stani Kulechov insists the community is eager to move forward and finalize a vote.

The proposal asks the Aave community if token holders should regain control over the protocol’s brand assets, which include domain names, social media handles, and intellectual property, via a DAO-controlled legal vehicle.

Aave's founder, Stani Kulechov, indicated that community members were keen on making decisions promptly, stating, “We realize the community is very interested in a path forward and is ready to make a decision.” However, some community members voiced concerns that the proposal was brought to a vote too soon, circumventing established governance norms.

Source: Stani Kulechov
Related: SEC concludes investigation into Aave after four years, according to CEO Kulechov

Aave governance vote sparks backlash over rushed escalation

Allegations of a Hostile Takeover at Aave Labs

Ernesto Boado, the former chief technology officer of Aave Labs and the author of the proposal, claimed that the vote was escalated without his consent or knowledge. He expressed his disapproval on social media, stating, “This is not, in ethos, my proposal,” and emphasized that he would not have approved the vote while discussions were still active. Boado criticized the escalation as a breach of trust within the community.

Marc Zeller, head of the Aave Chan Initiative (ACI), echoed these sentiments, declaring that the proposal was “unilaterally escalated” without resolving critical questions from both delegates and token holders. Zeller highlighted that the process and timing of the vote reduced community engagement and diminished the ability of late-informed participants to act. He remarked, “What started as a push for clarity and a more fair relationship between token holders and the current stewards is now turning into a hostile takeover attempt by Labs.”

Zeller specifically criticized the timing of the vote, arguing that it was pushed during a holiday period known to be one of the least favorable times for significant governance decisions, as it limits participation from major stakeholders, investors, and institutions.

In response to the backlash, Kulechov maintained that there had been five days of discussions with substantial community input, claiming that the vote adhered to all procedural requirements. He noted, “People are tired of this discussion, and getting into a vote is the best way to resolve it; this is governance at the end of the day.”

This dispute raises deeper governance questions for Aave, a leading player in the DeFi space. While the proposal mainly pertains to "soft" ownership aspects, the backlash highlights the substantial impact that control over escalation, timing, and information dissemination can have on community trust and governance dynamics.

Magazine: Bitcoin whale Metaplanet ‘underwater’ but eyeing more BTC: Asia Express