Bitcoin Crawls To $88k As Aave Faces Governance Drama: Finance...

Cryptocurrency markets experienced a modest recovery this week, but spot Bitcoin ETFs extended a five-day losing streak amid thin year-end liquidity.

Cryptocurrency markets had a small rebound following last week’s dip, as investor activity wound down during the holidays.

Bitcoin (BTC) fell to a weekly low of $86,561 on Tuesday, before bouncing back above $88,600 on Friday, according to TradingView data.

Spot Bitcoin exchange-traded funds (ETFs) demand remained weak, recording $175 million in outflows on Wednesday, which marked a fifth consecutive day of net outflows, according to Farside Investors.

In the wider cryptocurrency space, members of the Aave community criticized their decentralized lending and borrowing protocol over what they described as a premature push to advance a governance proposal on brand asset ownership.

The proposal, which sought to return control of the protocol’s brand assets and intellectual property to a DAO-controlled entity, was rejected on Friday, with a majority voting against it.

Aave token holders voted against a controversial governance proposal seeking to place control of the protocol's brand assets under DAO ownership.

On Friday, the snapshot poll closed with 55.29% voting “NAY” and 41.21% abstaining. Only 3.5% of voters supported the proposal.

The proposal asked whether Aave (AAVE) token holders should regain control over Aave’s domains, social handles, naming rights and other intellectual property through an entity under a decentralized autonomous organization (DAO). Supporters framed the move as a step toward decentralization and clarifying questions about brand stewardship.

The rejection closed a tense governance episode for Aave, one of decentralized finance's (DeFi) biggest lending protocols. It highlighted how timing, escalation and participation can shape governance outcomes in a DAO.

Source: CoinTelegraph