Aave DAO Proposal Sparks Debate Over Governance Transparency

A proposal by the Aave Chan Initiative within the Aave DAO aims to enhance governance transparency by requiring recipients of DAO funding to disclose conflicts of interest and abstain from related votes. According to NS3.AI, this initiative has faced criticism from Aave Labs employees, who argue that it could lead to unstable and subjective voting enforcement, potentially undermining governance finality. The ongoing vote shows a narrow margin in favor of the proposal, highlighting ongoing tensions between the DAO and Aave Labs leadership.