Aave Governance Dispute Sparks 19.5% AAVE Price Drop

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Release Time: 12/24/2025 18:00:51

AAVE

$109.772-4%

Summary

Aave governance conflict triggered a 19.5% drop in crypto price this week, with AAVE now at $150. The dispute pits Aave Labs against the Aave DAO over control and revenue sharing. In late December, Aave Labs added CoW Swap, shifting fees away from the DAO. A whale sold 230,350 AAVE tokens, worth $37–38 million. A snapshot vote on brand ownership is ongoing, with a 25% chance of passing. Price analysis shows ongoing pressure as decentralization tensions rise.

As per Bijié Wǎng, Aave is facing a significant governance conflict that has led to a 19.5% decline in the AAVE token price this week, with the token now trading around $150. The dispute centers on control between Aave Labs, the centralized development company founded by Stani Kulechov, and the Aave DAO, composed of token holders and elected representatives. The conflict intensified in late December after Aave Labs integrated CoW Swap, redirecting transaction fees away from the DAO treasury. This move sparked accusations of 'implicit privatization' and led to a major sell-off by a whale, who dumped 230,350 AAVE tokens worth $37–38 million. A snapshot vote on brand ownership is currently underway, with a 25% chance of passing, further highlighting the tension between decentralization and centralized control in DeFi.

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