The Curve DAO community has rejected a proposal that sought to provide significant financial backing to its main development entity, Swiss Stake.
The vote marks the latest governance decision within the Curve Finance ecosystem and comes as the protocol’s native token continues to show resilience around the $0.37 level.
According to details from the vote, several leading DeFi protocols that hold CRV participated in the process and contributed to the proposal failing to pass.
Curve DAO token holders say “no”
The decentralized autonomous organisation governing Curve Finance has voted against a proposal to distribute 17.4 million CRV tokens to Swiss Stake AG.
Overall, that’s approximately $6.2 million that the proposal sought to allocate to one of Curve’s core development teams.
Curve founder Michael Egorov outlined the proposal, with the target being to finance ongoing operations for Swiss Stake AG’s team of around 25 developers.
Funding would have covered areas such as protocol enhancements, infrastructure maintenance, security audits, and broader ecosystem initiatives.
Community discussions on governance forums revealed several key concerns.
Participants expressed worries about potential risks to decentralization, arguing that reliance on a limited set of entities could undermine the protocol’s distributed nature.
Additional feedback called for greater accountability regarding the utilization of previously approved funds and recommended structuring future disbursements in phased releases to mitigate any adverse effects on CRV’s market value.
This outcome stands in contrast to a similar request in August 2024, when Egorov successfully obtained approval for more than 21 million CRV tokens, valued at about $6.3 million then, which garnered over 90% support for ecosystem expansion.
Yearn Finance, Convex Finance key players
The governance vote concluded with 54.46% opposition and 45.54% support.
Notably, wallets associated with prominent DeFi projects Yearn Finance and Convex Finance were responsible for roughly 90% of the opposing votes, underscoring the influence of major stakeholders in DAO decisions.
Parallel issues have surfaced in other DeFi projects, such as Aave, where decisions on fee distribution have ignited discussions about balancing developer incentives with community and tokenholder interests.
CRV price reaction
Following the vote’s conclusion, CRV exhibited modest resilience in trading.
As of December 24, 2025, the token changed hands at around $0.37, up roughly 1.5% over the past 24 hours.
According to CoinGecko data, the CRV price was up 4% in the past week and just in the red over the past month.
However, it continues to face longer-term pressure, with bulls down nearly 60% across the past year.
That’s despite bulls rallying from lows of $0.18 in August 2024 to above $1 as altcoins rallied.
Now prices are back in the demand zone that also bolstered buyers in October 2025.
Broader market dynamics and governance-related uncertainties have catalysed the price declines over the longer time frames.
Despite this, Curve remains a prominent player in DeFi, boasting over $2.5 billion in total value locked.
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