DAO Governance

DAO Governance Tensions: Lessons from Aave (AAVE) and Jupiter (JUP) on Decentralization and Tokenomics – cover image
DAO Governance Tensions: Lessons from Aave (AAVE) and Jupiter (JUP) on Decentralization and Tokenomics

Recent disputes at Aave and Jupiter expose recurring governance failure modes — from brand/front-end control to buyback trade-offs. This article extracts practical fixes for DAO operators, governance researchers and tokenomics designers to harden DAOs against similar crises.

Aave Governance Crisis: How a Token-Alignment Vote Triggered a $50M Sell-Off and What It Means for DAO Risk – cover image
Aave Governance Crisis: How a Token-Alignment Vote Triggered a $50M Sell-Off and What It Means for DAO Risk

Aave’s token-alignment Snapshot vote and Aave Labs’ escalation sparked a $50M+ sell-off and a 10–20% AAVE collapse, exposing governance fragilities. This post dissects the timeline, mechanics, liquidity impact, and concrete risk-management lessons for token holders and builders.