Governance Risk protection in a bearmarket scenario

Hey guys,

Thinking about this today as a potential governance issue down the road:

If a crypto bearmarket does happen like it was in 2018, and altcoins (including governance tokens of major DeFi protocols) go down significantly (like 75%-99%) again, this might give competitor protocols or whoever has the sufficient capital the opportunity to buy up 50%+ voting governance easily and launch attack to control each other’s protocols right?

Take COMP for example, its market cap is $790M currently, taking over 50% voting governance would be difficult, but if it goes -99% like most altcoins did in the 2018 bearmarket, market valuation would fall to $7.9M, a small sum amount of money to pay to control a whole protocol through governance. Obviously this is worse case scenario for COMP, but this does pose a major risk for governance, we don’t want entities with not-the-best intents to control the protocol just because valuation fell.

Given this is such a significant risk, is there anything we could do to protect the governance of AAVE protocol just in case? Welcome your inputs and thoughts! Cheers.


In order to buy all this token there needs to be selling pressure first. Consider many people are staking their Aave or have they locked up in some other way. So you won’t be able to easily buy that many token. Also i highly doubt we will see any kind of -99% again. Last time there were ICOs that needed to sell their ETH to be liquid. Today they can just lend them on Aave and make interest which pays their development.