Recently, former AAVE core member Mark Zeller emphasized that DAOs are the driving force behind protocol operation, and not just Avara, which has become an independent private company. His point goes beyond simple operational structure issues and serves as an important warning regarding the fairness and long-term development of the entire ecosystem.
The Role of DAO in Actual Protocol Management
Over the past three years, key tasks such as risk management, technical upgrades, and ecosystem expansion for AAVE have been led primarily by DAO service providers. Through this, the protocol has generated significant revenue, and the actual decision-making and operations have always been centered around the DAO community. Not only has development been carried out, but strategic direction setting and ecosystem coordination have also been led by the DAO, making it clear who the true protagonists of the protocol are.
The problem lies in strategic brand assets like domain names and trademarks being unilaterally controlled by private companies. This is not just a matter of ownership. Companies that monopolize brand management can bypass DAO decision-making or independently coordinate the ecosystem’s direction. As a result, community-based governance becomes inherently weakened.
Brand Control Rights That Will Determine the Future of the Protocol
Zeller emphasized that this structure has long-term implications for the ecosystem. Closed control of brand assets not only undermines DAO governance but also damages ecosystem fairness and negatively impacts talent attraction and retention. Ultimately, it poses a structural threat to the overall development of the protocol.
This issue goes beyond the power distribution between DAOs and private companies, raising fundamental questions about preserving the essence of decentralized protocols. How the AAVE community responds will likely have a significant impact on the governance structures of similar protocols in the future.
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The true protagonist of AAVE is the DAO; corporate brand monopolies are risky.
Recently, former AAVE core member Mark Zeller emphasized that DAOs are the driving force behind protocol operation, and not just Avara, which has become an independent private company. His point goes beyond simple operational structure issues and serves as an important warning regarding the fairness and long-term development of the entire ecosystem.
The Role of DAO in Actual Protocol Management
Over the past three years, key tasks such as risk management, technical upgrades, and ecosystem expansion for AAVE have been led primarily by DAO service providers. Through this, the protocol has generated significant revenue, and the actual decision-making and operations have always been centered around the DAO community. Not only has development been carried out, but strategic direction setting and ecosystem coordination have also been led by the DAO, making it clear who the true protagonists of the protocol are.
Corporate-Controlled Brand Assets Threatening Governance
The problem lies in strategic brand assets like domain names and trademarks being unilaterally controlled by private companies. This is not just a matter of ownership. Companies that monopolize brand management can bypass DAO decision-making or independently coordinate the ecosystem’s direction. As a result, community-based governance becomes inherently weakened.
Brand Control Rights That Will Determine the Future of the Protocol
Zeller emphasized that this structure has long-term implications for the ecosystem. Closed control of brand assets not only undermines DAO governance but also damages ecosystem fairness and negatively impacts talent attraction and retention. Ultimately, it poses a structural threat to the overall development of the protocol.
This issue goes beyond the power distribution between DAOs and private companies, raising fundamental questions about preserving the essence of decentralized protocols. How the AAVE community responds will likely have a significant impact on the governance structures of similar protocols in the future.