Majority Votes Against Token Alignment Proposal as Voting Nears End

The AAVE token alignment proposal looks unlikely to pass, as the majority of DAO members are against it or chose to abstain from the vote. The DeFi token has notably reclaimed the psychological $150 level as the voting period for the proposal draws to a close.

Most AAVE DAO Members Against Token Alignment Proposal

Data from the AAVE DAO Snapshot vote shows that 55.49% of voters (951,700 votes) have voted against the proposal. Meanwhile, 40.84% of voters (700,300 votes) have chosen to abstain, and only 3.67% (62,900 votes) have voted in favor of the proposal.

This comes four days after the token alignment proposal first went up for voting, with many DAO members arguing that Aave Labs rushed the governance process. The proposal is now unlikely to pass as voting ends tomorrow.

As CoinGape reported, this saga began after a dispute between Aave Labs and DAO members over a swap fee diversion worth millions to the former rather than the DAO treasury. The proposal centers on token holders requesting control of Aave’s brand assets, including domains, social handles, and naming rights. If passed, any party controlling these assets would have to hand them over to the DAO.

This dispute has sparked bearish sentiments towards the AAVE token, which has declined over 14% in the last week. However, the token has climbed back above $150 in the last 24 hours as the vote draws to a close, which could provide some stability to the DeFi protocol’s ecosystem. TradingView data shows that the token is trading at around $153, up over 3% in the last 24 hours.

Amid the DAO saga and token decline, Aave’s founder, Stani Kulechov, has continued to double down and accumulated more tokens over the past week. Data from the on-chain analytics platform Arkham shows that Kulechov has purchased 116,693 AAVE during this period at an average cost of $176.

The Most Successful Year For The DeFi Giant Regardless

In an X post, Aave Labs team member Kolten noted that this was the most successful year for the top DeFi protocol, regardless of the ongoing DAO saga. He went on to note that the protocol became the largest DeFi protocol ever. DeFiLlama data shows that Aave is currently the largest DeFi protocol, with a Total Value Locked (TVL) of $33 billion.

Meanwhile, Kolten mentioned that the DeFi protocol is the first to reach $1 billion TVL across four networks. He also claimed that the DAO treasury had more revenue ($140 million) than the past three years combined. The team member noted that this number could grow significantly if Horizon, Aave App, and V4 find additional success next year.

Furthermore, Kolten stated that the GHO stablecoin recorded an all-time high growth, while Aave has become the largest and fastest-growing market for RWA-backed loans in decentralized finance. “It’s only ip from here,” he added.