$AAVE dropped nearly 20% to around $159 as a fierce internal governance conflict escalated between the CEO and the DAO over control of brand assets and revenue streams.
🔹 The CEO publicly opposed the transfer of brand assets, domain names, and social media to the DAO, forcing a Snapshot vote with a December 26 deadline. Aave Initiator Chan criticized this as "unprecedented interference" planned to sabotage the process during the holiday season.
🔸 At its core is the accusation that Aave Labs diverted approximately $10 million in annual revenue from the DAO. This directly undermines the accumulation of value for AAVE token holders and sparks debate about centralization.
🔹 The instability triggered a large-scale risk reduction event. On-chain data shows a whale was caught selling $37.8 million worth of AAVE at a loss to escape the immediate chaos.
If a CEO can override a DAO to maintain control over revenue and assets, is AAVE a decentralized protocol or just a centralized fintech company using governance as a cover?
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