Aave Plunges 10% as Governance Feud Erupts Over Brand Asset Transfer
Aave's native token AAVE fell about 10% to roughly $160 on Monday after a contentious governance proposal suggested transferring full ownership of the protocol's brand assets to the community. The proposal — framed as a move to place trademarks, domain names and related IP under communal control — prompted a heated public dispute between factions inside the Aave DAO and triggered a rapid sell-off as uncertainty spiked.
The drop highlights market sensitivity to governance risk: investors worry that shifting brand control could complicate partnerships, licensing and operational continuity if authority becomes fragmented. The proposal must still pass the DAO's formal voting process; supporters say it furthers decentralization while critics point to legal and coordination challenges. Expect continued volatility as the debate unfolds and a vote timetable is confirmed.