Aave Founder Breaks Silence After Contentious DAO Vote

Aave founder Stani Kulechov has directly addressed growing concerns around governance, alignment, and transparency following a heated DAO vote that exposed deep tensions between Aave Labs and $AAVE token holders.

In a public statement, Kulechov acknowledged that the recent governance debate has been messy but necessary. He framed the disagreement not as a failure, but as a feature of decentralized systems. According to Stani, the discussion is essential for Aave’s long-term health and evolution as one of DeFi’s most critical protocols.

“I am committed to making the economic alignment between Aave Labs and $AAVE token holders more clear,” he said, admitting that the team has not done a great job explaining this relationship in the past. He added that this will change going forward, with clearer communication on how value flows from products built by Aave Labs back to the DAO.

DAO Revenue And Treasury Control Take Center Stage

One key detail Stani emphasized during the debate is the DAO’s financial strength.

According to him, the Aave DAO earned $140 million this year alone, more than the previous three years combined. Importantly, control of this treasury sits entirely with $AAVE token holders, not Aave Labs.

This point became central to the conversation as critics questioned whether Labs has been capturing value at the expense of the DAO. Stani pushed back on that narrative, arguing that the DAO is stronger than ever and that its revenue generation proves the protocol is working as intended.

Still, he acknowledged that the connection between Aave Labs’ product development and DAO value accrual has not always been communicated clearly. Going forward, he said the team will be explicit about how Labs-built products create sustainable value for both the DAO and $AAVE holders.

Governance Vote Exposes Centralization Fears

The controversy stems from a recent DAO proposal that sought to transfer ownership of Aave’s brand assets, including domains, social media accounts, naming rights, and other intellectual property, into DAO control.

Despite expectations that the proposal would pass, $AAVE holders voted it down.

The rejection followed a series of events that heightened fears of centralization within the ecosystem. One flashpoint was Aave Labs’ partnership with @CoWSwap, which was initially announced as a pricing improvement initiative. However, community members later discovered that fees from the updated contracts were being routed to Aave Labs’ wallet, effectively diverting a key revenue stream away from the DAO.

This revelation sparked backlash. DAO members questioned why changes impacting protocol revenue were implemented without clearer governance oversight.

Validator Concerns And Market Fallout

As tensions escalated, prominent ecosystem participants began raising alarms.

Major validators, including @wintermute_t and Lido advisor @hasufl, publicly flagged challenges around protocol management and revenue distribution. Their concerns added weight to the argument that governance processes needed refinement and greater transparency.

The market responded quickly.

During the height of the internal conflict, $AAVE fell roughly 19% over the week, sliding to around $150. Selling pressure increased as uncertainty spread, with large holders exiting positions and compounding the downside move.

This period marked one of the more volatile weeks for Aave in recent months, underscoring how governance disputes can translate directly into price action, even for established DeFi leaders.

Stani Addresses $15M AAVE Purchase

Another flashpoint in the debate centered on Stani’s personal purchase of $AAVE tokens.

Critics accused the Aave co-founder of attempting to consolidate voting power after reports surfaced that he had bought between $10 million and $15 million worth of AAVE during the governance process. Some large holders, meanwhile, were selling at a loss, adding to perceptions of imbalance.

Stani addressed this directly.

He stated unequivocally that the purchased tokens were not used to vote on the recent proposal, and that influencing the outcome was never his intention. Instead, he framed the purchase as a long-term commitment.

“This is my life’s work,” he said. “I am putting my own capital behind my conviction.”

By clarifying that the tokens were not deployed in governance, Stani aimed to defuse accusations of manipulation while reinforcing his belief in Aave’s future.

Aave’s Role In DeFi Remains Intact

Despite the turmoil, Aave’s position in the DeFi ecosystem remains unchanged.

The protocol continues to be the largest lending platform in decentralized finance, serving as critical infrastructure for borrowing, lending, and liquidity across multiple chains. Even amid governance friction, usage metrics and integrations underscore Aave’s importance.

Stani closed his remarks with a broader message of collaboration. He emphasized that the Aave ecosystem is large enough for multiple service providers to succeed, and reaffirmed Aave Labs’ commitment to supporting external teams building on the protocol.

According to him, alignment will not come from control, but from cooperation.

The recent vote, while contentious, may ultimately strengthen Aave’s governance framework. Debate exposed weaknesses. Transparency is now a priority. And both Labs and token holders appear aligned on one thing: Aave’s long-term success depends on clearer incentives, better communication, and shared ownership of its future.

For a protocol that helped define DeFi, the message is clear. Governance is not always smooth. But it is working.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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