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Aave Governance Clash and Blockchain Developments Highlighted in Recent Updates image from coindesk.com
Image from coindesk.com

Aave Governance Clash and Blockchain Developments Highlighted in Recent Updates

Posted 24th Dec 2025

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Aave is currently facing a governance clash between DAO tokenholders and Aave Labs concerning control over branding and assets. The conflict arose after CoW Swap directed swap fees to Aave Labs instead of the DAO treasury. Central to the debate is the ownership of Aave trademarks, domains, social accounts, and branding assets, underscoring tensions between tokenholder governance and builder control. This dispute is especially significant given that Aave has over $33 billion locked in its network, raising the stakes for brand and governance authority.

In related blockchain updates, Ethereum's Glamsterdam plan is integrating both the execution-layer Amsterdam and consensus-layer Gloas upgrades. A notable feature is the introduction of Proposer-Builder Separation (ePBS, EIP-7732), designed to prevent any single actor from controlling transaction ordering. Under ePBS, block builders assemble and seal blocks, while proposers select the highest-paying block without inspecting its contents. Transactions are then revealed post-finalization to mitigate MEV abuse and reduce associated centralization risks.

On the Bitcoin front, developers including Jameson Lopp have stated that quantum attacks are unlikely in the near future, with meaningful defensive protocol changes anticipated to take 5 to 10 years.

Additionally, EigenLayer has proposed a new EIGEN token incentives model which would redirect revenue from Actively Validated Services and EigenCloud back to EIGEN holders, enhancing long-term value and aligning token economics with platform usage.

Finally, the IMF has praised El Salvador’s stronger-than-expected economic growth and noted its continued accumulation of nearly 7,500 BTC valued at about $660 million. Negotiations for the sale of the Chivo wallet are reported to be well advanced.

Sources
Coindesk Logo
https://coindesk.com/tech/2025/12/24/the-protocol-aave-community-split
* This article has been summarised using Artificial Intelligence and may contain inaccuracies. Please fact-check details with the sources provided.