$AAVE has launched a binding governance vote through the Arbitrum DAO to authorize the transfer of $71 million in disputed ETH, putting one of the largest single-asset treasury decisions in DeFi to a token holder vote.
The proposal, filed as a Constitutional AIP on the Arbitrum governance forum, asks token holders to approve the release of frozen ETH held within the Arbitrum ecosystem. Because it is classified as a constitutional proposal, it requires a higher quorum and approval threshold than standard governance actions.
The vote is binding, meaning its outcome would directly authorize on-chain execution of the fund transfer if approved. This distinguishes it from temperature checks or signaling votes that carry no enforcement mechanism.
If the proposal passes, the $71 million in ETH would be moved to Aave's protocol, where the funds could be deployed within its lending and borrowing markets.
Why the $71 million in ETH is disputed
The ETH in question became frozen after it was linked to proceeds from a North Korean cyberattack. The connection to a state-sponsored hack created legal and governance complications around whether the DAO could move the assets without court approval.
A court ruling cleared the Arbitrum DAO to proceed with transferring the funds to Aave, removing the legal barrier that had previously blocked the proposal. With judicial clearance now in place, the governance vote represents the final decision point.
The proposal, filed as a Constitutional AIP on the Arbitrum governance forum, asks token holders to approve the release of frozen ETH held within the Arbitrum ecosystem. Because it is classified as a constitutional proposal, it requires a higher quorum and approval threshold than standard governance actions.
The vote is binding, meaning its outcome would directly authorize on-chain execution of the fund transfer if approved. This distinguishes it from temperature checks or signaling votes that carry no enforcement mechanism.
If the proposal passes, the $71 million in ETH would be moved to Aave's protocol, where the funds could be deployed within its lending and borrowing markets.
Why the $71 million in ETH is disputed
The ETH in question became frozen after it was linked to proceeds from a North Korean cyberattack. The connection to a state-sponsored hack created legal and governance complications around whether the DAO could move the assets without court approval.
A court ruling cleared the Arbitrum DAO to proceed with transferring the funds to Aave, removing the legal barrier that had previously blocked the proposal. With judicial clearance now in place, the governance vote represents the final decision point.