DeFi | Velora (ParaSwap) Becomes Latest DAO to Wind Down Operations

Velora, a cross-chain decentralized exchange aggregator formerly known as ParaSwap, has voted to wind down its decentralized autonomous organization (DAO) and transfer control to its development firm, Laita Labs, following a governance vote.

The proposal, dubbed PIP-77, passed with 65.8% support, ending the DAO’s operational role and shifting all protocol management, infrastructure, and revenue to Laita Labs.

As part of the transition, roughly $415,000 in treasury funds will be transferred to the company to cover outstanding costs while staking programs will be shut down and users allowed to withdraw immediately.

The move also eliminates fee-sharing with token holders, turning the VLR token into a governance-only asset focused on structural decisions such as upgrades or chain expansions.

Laita Labs said the change reflects the project’s current reality, with governance participation declining and core operations already handled by the development team, though some community members opposed the shift, citing reduced token value alignment.

The latest Velora DAO wind down comes as DAOs vs. Labs governance models come under pressure across the DeFi ecosystem.

Key examples include:

• The AAVE DAO vs AAVE Labs months-long dispute over free distribution between token holders and AAVE Labs.
• The Balancer DAO shutdown due to unsustainability.
• The Tally DAO governance platform shutdown due to regulatory pressure.

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