Aave faces governance crisis: Founder's large-scale acquisition sparks community division

Source: CryptoNewsNet Original Title: DeFi Giant Undergoes Crisis in Altcoin! Founder Under Scrutiny Due to Acquisitions! Original Link: https://cryptonews.net/news/defi/32185872/

Governance Dispute Escalates

Aave (AAVE) is an important DeFi token listed on a major exchange, and has recently become the focus of community attention due to multiple events.

The core issue revolves around control of the Aave protocol brand and related assets. There is ongoing power struggle between Aave DAO and Aave Labs, leading to community division.

Founder’s Large Acquisition Sparks Attention

During the controversy, Aave founder Stani Kulechov recently spent $10 million to purchase AAVE tokens.

This move attracted market attention as AAVE’s price declined amid the controversy, further fueling discussions within the DeFi community about who should control the protocol.

Critics point out that Kulechov’s purchase aims to increase his voting power in key governance proposals. Although investors generally interpret the founder’s acquisition as a confidence signal, it has not reversed the widespread market sell-off.

DAO vs Development Team: Control Battle

The current key question is: Should control of Aave be held by the DAO or Aave Labs?

Proponents of DAO control argue: This can limit unilateral control by private companies, ensuring that the Aave brand reflects a protocol managed and funded by token holders, rather than a product of a single developer.

Supporters of Aave Labs holding governance rights argue: Taking control away from developers could slow development progress, complicate partnerships, and blur the boundaries of protocol implementation and promotion.