Curve DAO’s $6 million Proposal Sparks Governance Debate: Founder Explains

- Curve and Aave disputes highlight active participation and broader governance implications. - High voter turnout and legal concerns point to evolving DAO framework challenges. 2026-02-22 On February 22, 2026, Cointelegraph reported on Dr. Michael Egorov's perspective that disagreements within decentralized autonomous organizations (DAOs) are essential to organizational health. According to Egorov, these disputes encourage active voter engagement and counter apathy, creating a foundation for decentralized decision-making processes. Egorov highlighted his stance by referencing two notable governance disputes. The first instance emerged in the Curve DAO during 2024, where a proposal to allocate $6.3 million to Swiss Stake AG, its primary development entity, sparked the dispute. Following community opposition, the initial proposal was revised, and an updated version in December 2025 garnered a remarkable voter turnout of over 80%. Egorov emphasized the role disagreement played in activating such extensive participation, framing it as a positive force for heightened engagement. The second example occurred within the Aave DAO during December 2025, where governance debates arose over how to distribute revenue from fees generated by an integration with CoW Swap. The community deliberated whether the funds should flow to Aave Labs, Aave’s core development team, or remain with the DAO itself. The subsequent failure of a proposal to transfer Aave’s intellectual property and branding rights to DAO control added complexity and spotlighted the legal challenges inherent in DAO operations. These episodes drew attention to broader concerns about intellectual property frameworks and the compatibility of DAOs within traditional financial systems. Egorov also addressed the prevalent issue of voter apathy, which often concentrates decision-making power. He highlighted the Curve DAO’s solution: incentivizing long-term token lock-ups to drive sustained participation. This mechanism reinforces active engagement by aligning governance interests with the protocol’s long-term development. As of 20:08 UTC on February 22, Curve DAO Token (CRV) traded at $0.228, reflecting a 6.32% decrease in 24-hour trading volume. Meanwhile, Aave (AAVE) traded at $117.91, corresponding to a 4.475% drop in trading volume.