Disagreements within decentralized autonomous organizations (DAOs) are a sign of a healthy DAO, according to Dr. Michael Egorov, founder of Curve Finance. DAOs utilize smart contracts for automated functions and voting for governance of onchain protocols.
Egorov highlighted that recent disputes within the Curve DAO and Aave DAO underscore the importance of disagreements for maintaining a structure’s vibrancy. He stated:
“If everyone automatically agrees on something, it feels like people just don’t really care. They vote for whatever comes in, or they don’t participate at all. The first sign of that would be governance apathy, like when people are not voting at all.”
(Translation: If everyone automatically agrees on something, it feels like people just don’t really care. They vote for whatever comes in, or don’t participate at all. The first sign of that would be governance apathy, like when people are not voting at all.)
An earlier governance proposal in 2024 regarding a grant to Swiss Stake AG, valued at around $6.3 million, faced considerable opposition from Curve DAO members. This proposal was later revised and resubmitted, achieving an 80% participation rate from DAO members.
Egorov pointed out that Curve token holders tend to lock their tokens for extended periods, promoting long-term governance engagement.
He further noted that DAOs embody a novel model for human organization, distinct from traditional companies or sovereign states, yet exhibiting traits of both.
Aave Dispute Reveals Governance Challenges
In December 2025, a governance conflict occurred between Aave Labs and the Aave DAO concerning fees tied to the CoW Swap integration. DAO members expressed concerns about fees being directed to a wallet controlled by Aave Labs, sparking debates over intellectual property rights within the platform.
A proposal to transfer Aave brand assets to the DAO ultimately failed to pass.
Legal Frameworks for DAOs
Egorov emphasized that DAOs need regulated legal structures to engage with the real world effectively. Legal recognition could help address governance disputes by allowing DAOs to hold business entities and bank accounts, suggesting that current legal systems must adapt to keep pace with technological advancements.
