Aave governance clash: DAO rejects brand transfer as founder buy and whale sell drive AAVE slump

Aave’s governance dispute escalated after an ARFC proposal to transfer brand assets (domains, social accounts, naming rights) from Aave Labs to the DAO was decisively rejected (≈994,800 against vs ~63,000 for) with a large abstention (~41%). The conflict followed community claims that Aave Labs rerouted front‑end swap fee flows when switching aggregators (ParaSwap → CowSwap), potentially diverting substantial revenue away from the DAO — estimates suggested up to ~$200k weekly. Founder Stani Kulechov defended Aave Labs, noting the DAO generated roughly $140M this year and saying his $10–15M AAVE spot buy was not used to influence votes. Market reaction was immediate: a major holder executed a programmed sell of ~230,000 AAVE (≈$38M notional), crystallizing heavy selling pressure after buying earlier at higher prices. AAVE price fell roughly 20% during the week (from high $180s to mid $140s), with perp funding turning negative and volatility spiking. Aave Labs has initiated an ARFC snapshot to resolve brand-control issues while pledging clearer communications on value delivery to the DAO. For traders: expect elevated volatility and downside risk in the short term — key support sits around $140–$142; a decisive break lower would likely accelerate exits, while governance clarity, a large buyer, or institutional fixes would be needed to restore confidence and remove the governance discount.