Aave Grapples with Contentious Token Alignment Proposal
gm, Defiers!
Today’s big story:
- AAVE token holders appear set to reject a token alignment proposal after it was rushed to a vote by Aave Labs without the author’s approval.
In other news:
- Crypto markets erase Monday’s gains
- Polymarket volumes surge on L2 speculation
- 2025 was a bad year for hyped token launches
Read more below! But first, please give our sponsors some love; they make this newsletter possible.
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We’re back! Here’s what you need to know in web3 today
📈 Markets in the Past 24 Hours
| TICKER | VALUE | 24H | |
|---|---|---|---|
 | Bitcoin | $87,473 | -2.47 % |
 | Ethereum | $2,964.34 | -2.39 % |
 | BNB | $849.3 | -1.82 % |
 | XRP | $1.89 | -1.82 % |
 | Solana | $124.33 | -1.81 % |
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🎬WATCH
Uniswap is about to “turn on the switch” with Hayden Adams
In this episode of The Defiant Podcast, Uniswap founder Hayden Adams joins us right as the UNIfication (Unification) proposal has moved to a final governance vote—a sweeping plan from Uniswap Labs + the Uniswap Foundation that would activate protocol fees, introduce a programmatic UNI burn, and realign how value accrues across the Uniswap ecosystem.
Top News in the Past 24 Hours
- Aave Founder Calls Contentious Token Alignment Proposal ‘Bad for Aave’The Aave alignment saga rages on after founder Stani Kulechov declared Aave Labs’ intent to vote against BGD Labs’ tokenholder alignment proposal from earlier this week.Why it matters: The protocol’s AAVE token has cratered by almost 20% over the past week amid the ongoing uncertainty.
- Bitcoin Slides Back Below $88,000 as ‘Santa Rally’ Gets DerailedCryptocurrency markets fell on Tuesday, with the total cryptocurrency market capitalization standing at about $3.04 trillion, down 2.4% over the past 24 hours.Why it matters: Analysts attribute the volatility to year-end positioning and potential tax-loss harvesting.
- Polymarket Volumes Surge on Layer 2 Speculation Polymarket airdrop speculation is ramping up after a screenshot emerged of a Polymarket team member saying that a Polymarket Layer 2 network is the prediction market’s “#1 priority.” Why it matters: Polymarket just recorded its three highest-volume days since the U.S. presidential election in November 2024.
- Token Launches With Low FDVs Vastly Outperformed Hyped Debuts in 2025: Memento Research Most token launches in 2025 failed to reward early buyers, with projects that debuted at lower fully diluted valuations (FDV) greatly outperforming their bigger, more hyped rivals. Why it matters: Out of 118 token launches in 2025, more than 84% are now trading below their token generation event (TGE) valuations, with a median loss of more than 70%.
Trending on The Defiant
- Crypto Markets Rally Ahead of Holidays
- Curve DAO Rejects $6.2 Million Swiss Stake Funding Proposal
- Tokenized Equity Sector Surges 2500% in 2025
- LEO Surges as Bitfinex’s Fee Cut Highlights Exchange Competition
- Coinbase Sues Three States Over Prediction Market Restrictions
- Bitcoin Stabilizes Near $88K as Selling Pressure Persists
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