- Egorov argues that internal disagreement indicates active participation rather than instability in decentralised governance systems.
- A disputed US$6.3m grant and a later 80% turnout vote illustrate how contention can drive engagement.
- A separate Aave conflict highlights unresolved tensions around fee flows, IP ownership and legal standing.
Michael Egorov, founder of Curve Finance, has argued that disagreement within decentralised autonomous organisations (DAOs) is a sign of health rather than dysfunction. DAOs operate through smart contracts and member voting to oversee onchain protocols, forming a decentralised governance structure distinct from traditional companies.
Egorov said that when proposals pass without resistance, it often reflects disengagement. “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.”
He pointed to a 2024 Curve DAO proposal to award Swiss Stake AG, the protocol’s main developer, a grant worth about US$6.3 million (AU$8.88 million) at the time, which prompted significant opposition.
After revisions, the proposal was resubmitted in December 2025 and attracted more than 80% voter turnout. This level of participation contrasts with findings from LamprosTech that most DAOs struggle to surpass 15% turnout, concentrating influence among a small active minority.
Related: Fed’s Kashkari Calls Crypto ‘Utterly Useless,’ Questions Stablecoin Value
Internal Scrutiny Over Fee Distribution
Egorov also referenced a December 2025 dispute within the Aave DAO concerning fees from a CoW Swap integration that were directed to a wallet controlled by Aave Labs. Members challenged the arrangement, triggering debate over intellectual property control, and a proposal to transfer brand assets to the DAO ultimately failed.
Egorov said DAOs are well suited to governing onchain activity but remain constrained by the absence of legal recognition, limiting their interaction with offchain financial systems.
Related: Aave Labs Proposes 100% Revenue Shift to DAO Amid Governance Showdown
The post Curve Founder: DAO Disputes Signal Strength, Not Weakness appeared first on Crypto News Australia.
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