qinbafrank
qinbafrank|Dec 23, 2025 03:19
The Aave governance conflict has escalated into the largest-scale battle in DeFi history between a DAO community and its founding team. The outcome will profoundly impact the evolution of governance models in crypto projects. Actually, AAVE has already been considered a model for crypto project governance, but it still can't escape 'human nature': The brand value mainly comes from the DAO-driven protocol TVL and community, so Labs shouldn't monopolize it; But a pure DAO mechanism is highly inefficient and can't win in fierce competition. Core institutions like Labs are needed to push key agendas forward. This isn't just a single event but a fundamental governance dilemma— Who owns the protocol? The code? The frontend? The brand? How should these be divided? How should the interests between the core team and the community be allocated? And how should the profit distribution mechanism be designed? If consensus can be reached, AAVE might unlock new growth opportunities and set a new governance model for other crypto projects. If consensus can't be reached, the community and team will be torn apart, and the likely outcome will be a lose-lose situation.
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