A vote on the Aave brand sparked a heated conflict within the DAO.
Date: 2025-12-23 Author: Henry Casey Categories: BUSINESS
Aave Labs' decision to put the issue of control over Aave brand assets to a Snapshot vote sparked a major rift within the DAO. Some delegates and the initiative's author criticized the company's actions, claiming the process was launched prematurely and without adherence to the agreed-upon rules of decentralized governance.
At the center of the dispute was a proposal called "ARFC AAVE Token Alignment. Phase 1 — Ownership." The document proposes transferring formal control over the project's key intangible assets directly to AAVE token holders. This includes domain names, social media accounts, brand usage rights, GitHub organizations, NPM namespaces, and other infrastructure elements. Currently, management of these assets is concentrated in Aave Labs, BGD Labs, and affiliates.
BGD Labs co-founder Ernesto Boado, who authored the initiative, stated that the proposal was moved to Snapshot without his consent. He claimed that the version submitted to the vote did not reflect the original concept and was hastily drafted, despite ongoing community discussions. Boado emphasized that such actions undermine the fundamental principles of trust in the DAO.
He also called on token holders to either ignore the vote or abstain from participating, so as not to legitimize what he considered an unjustified escalation of the process. The entrepreneur noted that effective decentralized governance requires open and often lengthy discussions, rather than a sudden transition to formal procedures without reaching agreement.
Aave Labs, for its part, explained at the forum that after five days of active discussions, a lack of progress and the need for a formal decision had become apparent. The company cited the high level of engagement from delegates and the community, noting that the Snapshot vote would allow for a clear majority position and conclude the protracted discussion.
However, criticism was not limited to the initiative's author. Aave Chan Initiative representative Mark Zeller stated that the proposal was put to a vote without a clear consensus and without Boado's approval. He also noted the unfortunate timing, emphasizing that the holiday season reduces activity among large token holders and institutional participants.
According to Zeller, the recent delegations of significant voting volumes created additional tension, heightening the sense of urgency and pressure on the process. He characterized Aave Labs' actions as hostile and compared them to an attempt to seize control by force, adding that the conflict could have been avoided with a more gradual and measured approach to governance.
The voting situation demonstrated the vulnerability of DAO mechanisms and once again raised questions about the balance between the speed of decision-making and adherence to decentralization principles in large crypto projects.
