Aave DAO Proposal to Transfer Brand Assets Fails Vote

The Aave Governance Forum recently concluded a voting process on December 26, 2025, where a proposal to transfer brand assets to DAO control was rejected, receiving 994,800 votes against.

The outcome reflects potential concerns over governance stability, impacting the AAVE token market with a notable sell-off and highlighting challenges in decentralizing brand management through a DAO.

Aave Governance Vote: 55% Oppose Asset Control Proposal

Ernesto Boado, former CTO of Aave Labs and Co-Founder of BGD Labs, proposed transferring the Aave brand’s domain names, social media accounts, and other assets to a decentralized autonomous organization (DAO) on December 16. Despite efforts to reduce third-party control risks, the proposal received 994,800 votes against out of a total 1.8 million, leading to its failure.

Market reactions were significant, with a notable sell-off involving 230,000 AAVE tokens resulting in a ~10% price drop. Stakeholders interpreted the sell-off as a response to governance uncertainty over protocol fundamentals, impacting investor confidence. Launched in November 2017, Aave has not had an easy path, yet it remains an influential protocol due to its consistent push for decentralized finance innovations.

Aave Token Faces 10% Drop Post-Vote Outcome

Did you know? AAVE’s recent price drop to $156 reflects investor sensitivity to governance and ownership structures in blockchain protocols.

According to CoinMarketCap, Aave’s current price stands at $152.90, with a market cap of $2.34 billion, representing a market dominance of 0.08%. The 24-hour trading volume increased by 31.08% to $326 million. Recently, AAVE’s price shifted 1.63% in 24 hours and plummeted 43.48% over 90 days.

The Coincu research team suggests potential outcomes may stem from the vote’s failure, possibly affecting token governance perception. Historical trends indicate mixed investor confidence and the uncertainty surrounding decentralized governance can impact AAVE’s market performance in the future.