Aave Vote on $51M Funding Plan Caps AAVE Price Rally

TLDR

• AAVE reached an intraday high of $119.35 before pulling back to $116.60 while holding a 2.8% daily gain.
• The Aave DAO is preparing to vote on a proposed $51 million funding package for Aave Labs.
• Critics estimate that Aave Labs has previously received over $86 million from grants, ICO proceeds, and swap fees.
• Marc Zeller published an audit citing gaps in transparency and financial reporting within Aave Labs.
• Zeller also raised concerns about governance concentration among certain voting address clusters.

AAVE traded higher on the day but trimmed gains as a key governance vote approached. The token reached $119.35 before retreating to $116.60, holding a 2.8% daily increase. Traders responded to a proposed $51 million funding package for Aave Labs.

Aave DAO Faces Scrutiny Over $51M Proposal

The Aave decentralised autonomous organisation will vote on a $51 million allocation for Aave Labs. The proposal aims to fund core development and ongoing protocol maintenance. However, community members questioned the scale and structure of the request.

Critics estimate that Aave Labs has already received over $86 million from grants, ICO proceeds, and swap fees. They argue that the DAO must demand clearer accountability for prior spending. Marc Zeller said his audit found “gaps in transparency and financial reporting” within the organisation.

Zeller, founder of the Aave Chan Initiative, published a detailed review of Aave Labs operations. He examined financial disclosures and assessed completed product initiatives. He stated that some projects failed to reach profitability or saw limited user adoption.

He also highlighted governance concentration within certain voting address clusters. According to his report, these clusters have influenced past major decisions. As a result, some members questioned the balance of power inside the DAO.

Aave Labs released its own contributions report before the vote. The team outlined its role in developing Aave since 2017. The report detailed work on protocol upgrades and ecosystem tools.

Supporters cited the launch of Aave V1, V2, and V3 as proof of delivery. They also referenced the Safety Module and flash loans as core achievements. They argue that continued funding will secure technical stability.

Price Reaction and Market Position

AAVE opened the session with strong momentum before pulling back from its intraday high. The token traded at $116.60 after reaching $119.35 earlier in the day. The price retained a 2.8% gain over 24 hours.

Market participants linked the restrained advance to uncertainty around the governance outcome. Traders assessed the potential impact of approval or rejection. As a result, buying pressure slowed during the session.

The protocol’s total value locked stands above $26 billion. This figure reflects sustained usage across supported networks. However, the funding debate influenced short-term sentiment.

Analysts stated that structured reporting conditions could strengthen confidence. They added that disputes or delays may increase volatility. The DAO vote remains pending at the time of reporting.

The post Aave Vote on $51M Funding Plan Caps AAVE Price Rally appeared first on Blockonomi.