- Stani Kulechov disputes token allocation rumors amid market volatility.
- DeFi governance transparency debated within community.
- Market reactions lead to AAVE price fluctuations.
On August 24, Aave founder Stani Kulechov addressed rumors on X about Aave receiving 7% of WLFI’s token supply, which a WLFI team member disputed.
The conflicting statements have sparked debates on DeFi governance transparency and caused significant volatility in AAVE’s price.
Stani Kulechov Debunks WLFI Token Allocation Rumors
Stani Kulechov, founder of Aave, denied claims that a proposal would grant Aave 7% of WLFI tokens, asserting on X that the proposal had been approved by both Aave DAO and WLFI. “Proposal created by the WLF team has passed and voted on Aave DAO,” Stani Kulechov stated. A suspected WLFI wallet team member had previously denied the allocation claim. The controversy over the alleged token allocation caused notable price fluctuations, with AAVE surging nearly 19% before correcting downward by over 8%, demonstrating the sensitivity of markets to governance news.
Community discussions reignited debates around the transparency of DeFi governance processes, with the incident sparking concerns about the influence of external platforms on decentralized protocols.
DeFi Governance Challenges Emerge Amid Market Volatility
Did you know? Uniswap faced similar governance challenges in 2021, where community treasury allocation proposals led to intense debates on DeFi transparency and stability.
As of August 24, 2025, Aave’s price is $351.33, with a market cap at $5.35 billion, according to CoinMarketCap. The token experienced a 16.66% rise over 7 days, even as 24-hour trading volume fell by 52.92%.
Aave(AAVE), daily chart, screenshot on CoinMarketCap at 21:34 UTC on August 24, 2025. Source: CoinMarketCap
Coincu’s research team observes that governance disputes like this can lead to heightened volatility and trading activity. They emphasize the need for clear communication to maintain protocol stability amid market fluctuations.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
Source: https://coincu.com/news/aave-founder-addresses-token-rumors/
