Aave Labs' Unilateral Vote on Brand Rights Sparks DAO Outcry

Aave Labs escalated tensions within the Aave DAO by unilaterally pushing a proposal on brand-asset ownership to a Snapshot vote, bypassing community consensus.

The Announcement/Development

Aave Labs, led by CEO Stani Kulechov, initiated a vote on December 20, 2025, to decide the ownership of Aave's brand assets. The proposal seeks to clarify whether Aave Labs or the Aave DAO holds the rights to the brand. The vote, conducted via Snapshot, is set to conclude on December 27, 2025. This move was executed without prior discussion with the Aave DAO, causing significant unrest among its members.

Why This Matters

The unilateral action by Aave Labs addresses the ongoing debate over governance and control within decentralized organizations. If Aave Labs retains brand rights, it could set a precedent for other DAOs, potentially undermining the decentralized ethos. The market opportunity for decentralized governance solutions is estimated at over $1 billion annually, and this dispute could influence future governance models. Users and developers benefit from clear ownership structures, ensuring the integrity and direction of the protocol.

Market Response and Outlook

Following the announcement, AAVE's token price dropped by 3.5% to $120. The community response has been overwhelmingly negative, with several key figures, including Aave DAO contributor Marc Zeller, expressing concerns over the lack of transparency. Aave Labs has promised to address these concerns in a community call scheduled for January 5, 2026. The outcome of this vote could impact Aave's integration with other DeFi protocols and its position in the broader Web3 ecosystem.

Read more about Aave's governance issues on The Block. For the latest updates on Aave and other DeFi protocols, visit DeFi News. To track AAVE's market performance, check CoinGecko.