Behind the Rejection of the $17M CRV Grant: Founder's Proposal Power Weakened, Convex and Yearn Become Key Players
A proposal to grant 17 million CRV tokens (worth approximately $1.7 million) to Swiss Stake AG, a long-time core development team, was rejected in a Curve Finance governance vote. Major veCRV holders, including Convex and Yearn, voted against it, wielding enough voting power to determine the outcome.
The rejection reflects two key shifts in DAO governance: First, communities are demanding greater accountability, transparency, and measurable results for treasury grants, moving beyond unconditional funding. Second, large veCRV holders, motivated by self-interest, are resistant to proposals that dilute their token value without clear, foreseeable benefits to them.
The incident highlights the evolving power dynamics within Curve's governance. The veToken model, which ties voting rights to long-term locked capital, inherently concentrates power among large, capital-rich entities like Convex and Yearn. As users delegate their tokens to these protocols for yield and liquidity, governance is increasingly shifting from founders and communities to a form of "governance capitalism" dominated by major stakeholders.
marsbit12/25 13:15
