According to Blockbeats, Aave Labs and the Aave DAO have been embroiled in a governance dispute since December 4, 2025, after Aave Labs changed the default swap interface on aave.com from ParaSwap to CoWSwap. This change redirected revenue away from the Aave DAO treasury, sparking accusations of misallocation. The conflict escalated with a proposal by former CTO Ernesto to transfer core protocol IP and revenue control to the DAO, which was opposed by Aave CEO Stani Kulechov. The dispute led to a major whale selling 230,000 AAVE tokens worth $38 million, triggering a price drop. In response, Kulechov spent $14.8 million to buy back AAVE tokens, but the proposal to transfer brand control to token holders ultimately failed with 55.29% voting against it.
Aave Governance Dispute Escalates Over Revenue Allocation and IP Ownership
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Summary
Aave Governance Dispute Intensifies Over Revenue and IP Control
Aave Labs and the Aave DAO remain at odds after Aave Labs switched the default swap interface on aave.com from ParaSwap to CoWSwap on December 4, 2025, shifting revenue away from the DAO treasury. A proposal to transfer IP and revenue control to the DAO was rejected, with 55.29% voting against it. The conflict triggered a $38 million AAVE sell-off by a major whale, pushing the fear and greed index toward panic levels. CEO Stani Kulechov countered with a $14.8 million buyback, but tensions persist. Altcoins to watch may include Aave as governance issues continue to impact market sentiment.
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