#Allegation of $10M Token Purchase Against Aave Founder
Allegations are being made against Aave protocol founder, Stani Kulechov, that he purchased $10 million worth of AAVE tokens before an important governance vote, which increased his voting power.
Governance Drama
There is suspicion within the crypto community that this purchase was made to increase his influence within a governance proposal. Expressing doubt on this, DeFi strategist Robert Mullins said, "Tokens are not properly designed to prevent governance attacks."
Concentration of Voting Power
Voting power within the Aave DAO is concentrated in the hands of a few large holders. According to Snapshot data, just the top 3 voters control over 58% of the votes. This is raising questions about the rights of small investors.
Controversy Over the Proposal
This issue escalated further when a proposal regarding control over the protocol's brand assets was hastily put up for a vote, despite insufficient time for discussion. The proposal's author also objected to this.
This incident has once again raised the question of whether token-based governance can protect the rights of small investors, especially when founders possess such significant economic leverage.
