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COINOTAG News, December 24 — In a report cited by Cointelegraph, Aave founder Stani Kulechov has drawn scrutiny after a $10 million purchase of AAVE tokens. Several voices in the DeFi community contend the trade could bolster his voting power in a forthcoming governance proposal, heightening concerns about influence over protocol direction.
Renowned DeFi strategist Robert Mullins warned that the buyback may be aimed at swaying governance to the detriment of token holders. “This is a clear example that the token mechanism has not been adequately designed to effectively prevent governance attacks,” he noted. Crypto pundit Sisyphus echoed similar concerns, suggesting Kulechov may have sold substantial AAVE in earlier years, prompting questions about strategic motives behind the recent acquisition.
As Aave holders debate how governance rights should be exercised, critics argue that large-scale purchases can disproportionately shape outcomes on high-risk proposals. The episode underscores the need for stronger governance safeguards to safeguard token holder value and maintain protocol integrity within the evolving DeFi landscape.