Aave DAO trails with 4% support as voting reveals deep rifts. Founder Stani votes against DAO in DeFi’s most explosive conflict yet. Aave faces its most criticalAave DAO trails with 4% support as voting reveals deep rifts. Founder Stani votes against DAO in DeFi’s most explosive conflict yet. Aave faces its most critical

Aave $10M Civil War Update: DAO Loses Vote as Token Price Drops

Aave DAO trails with 4% support as voting reveals deep rifts. Founder Stani votes against DAO in DeFi’s most explosive conflict yet.

Aave faces its most critical moment yet. The protocol’s internal conflict has reached a breaking point.

Voting went live this week on the contentious revenue proposal. And the results paint a stark picture for the Aave DAO.

According to Observe on X, the DAO holds just 4.06% support. Meanwhile, 62.76% voted against the proposal. Another 33.18% chose to abstain.

Founder Votes Against DAO Proposal

Stani Kulechov deployed 333,000 tokens against the DAO. That represents roughly 33% of total voting power so far.

The move signals a decisive stand from Aave Labs. Marc Zeller voted to abstain, following his public statements. Major crypto voices like DefiIgnas also sat out the vote.

The numbers tell a clear story.

The crypto community now watches three scenarios unfold. Each carries consequences for DeFi’s largest lending protocol.

First, the DAO could fork the frontend and operate independently. This path grants control over surplus fees. However, it brings massive operational burdens including security, updates, and infrastructure management.

Second, a legal battle looms. The conflict might escalate to Wyoming courts, exactly as industry analyst Tulipking predicted earlier.

Third, nothing happens. The DAO accepts defeat and moves forward. This seems likely since Aave Labs controls the brand, IP, social accounts, GitHub, and naming rights.

AAVE Token Price Drops Amid Conflict

Per price data from CoinGecko at press time, AAVE token trades at $146.73. The token’s price has dropped by 3.68%in the past day and about 20% over the week. 

This decline comes despite positive regulatory news. The SEC officially ended its investigation on December 17.

Observe emphasized the danger in any outcome. “Every scenario creates a crack between Aave Labs and Aave DAO,” the analyst noted.

Aave’s dominance stems from more than just protocol design. Service providers like Chaos Labs, LlamaRisk, BGD Labs, TokenLogic, and Aavechan drove growth through multiple cycles.

Related Reading: $10M Aave Civil War: DAO Moves to Seize Control From Labs

Vote Sets Precedent for DeFi Governance

This conflict transcends Aave alone. The vote addresses fundamental questions that plague the entire crypto space.

Who owns a protocol? Do tokens represent governance or just utility? How does equity stack against tokenized voting rights?

The post Aave $10M Civil War Update: DAO Loses Vote as Token Price Drops appeared first on Live Bitcoin News.

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