Curve Governance Controversy: Large Funding Proposal Rejected, Decentralized Governance Questioned

SorryRugPulled · 2026-01-12T08:15:12+00:00

A proposal from Curve DAO was rejected after receiving 54.46% opposition votes, exposing issues of centralized power in the governance structure and prompting the community to deeply reflect on transparency and decision-making authority. The use of proposal funds was questioned, investors expressed concerns about the project's transparency, and the CRV token market sentiment could be affected in the short term.

SorryRugPulled

2026-01-12 08:15:12

Abstract generation in progress

A fierce vote in Curve DAO has sparked in-depth community reflection on the project’s governance structure. Recently, a proposal to allocate 17.4 million CRV tokens (currently worth approximately $6.8 million) to Swiss Stake AG was rejected, with opponents holding 54.46% of the vote and supporters only receiving 45.54%.

The Power Distribution Behind the Vote

The issue behind this rejection warrants closer attention. Data shows that nearly 90% of the opposing votes came from addresses related to Yearn Finance and Convex Finance, raising concerns within the community about excessive centralization of governance power in Curve. Some participants pointed out on forums that this voting pattern exposes a fragile aspect of DAO governance—major holders may control the direction of ecosystem decisions.

Use of Funds and Trust Crisis

The proposal was submitted by Curve Finance founder Michael Egorov, with funds originally intended for software development, infrastructure maintenance, security audits, and ecosystem support for the Swiss Stake team. However, community members generally demand transparency, believing Swiss Stake should first disclose detailed information about previous funding expenditures and results, rather than requesting additional funds directly. This attitude reflects widespread investor anxiety over project transparency.

Market Reaction to CRV Tokens

According to the latest data, CRV is currently trading at $0.40, showing some fluctuation compared to the implied valuation in this proposal. While this price point corresponds to a funding scale still reaching several million dollars, the rejection of the vote itself may exert short-term pressure on the token market sentiment.

This incident indicates that even governance decisions for leading DEX projects face fundamental challenges in balancing the founding team’s influence with community power checks.

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