Aave Founder Outlines New Growth Strategy After Bitter Governance Clash

TLDR

Table of Contents

Aave Labs plans to share non-protocol revenue with AAVE tokenholders.
Kulechov aims to expand Aave into RWAs, consumer, and institutional finance.
DAO rejected a proposal to transfer Aave’s brand and IP control.
Dispute continues over who should receive swap-related protocol fees.

Aave founder and CEO Stani Kulechov announced a revised growth strategy after a DAO governance proposal was voted down. The proposal sought to transfer ownership of the Aave brand and its intellectual property from Aave Labs to the DAO. The rejection sparked community-wide discussions over control, value distribution, and future governance.

In response, Kulechov posted a detailed message on the Aave governance forum outlining a broader plan. He said Aave must move beyond its current role as a DeFi lending platform to ensure long-term growth. His focus includes developing products tied to real-world assets (RWAs), institutional services, and consumer finance tools.

AAVE LABS TO DISTRIBUTE NON-PROTOCOL REVENUE TO TOKEN HOLDERS, ADDRESS IP RIGHTS IN UPCOMING PROPOSAL AMID CONTROVERSY: GOVERNANCE pic.twitter.com/3LCtdz20iI
— Aggr News (@AggrNews) January 2, 2026

He referred to the current stage as a “crossroads” for Aave, warning that DeFi growth could stall without exploring wider markets. The founder framed his vision as necessary for Aave to remain competitive and relevant in a rapidly changing financial ecosystem.

Plans to Distribute Revenue and Address IP Ownership Again

Kulechov revealed that Aave Labs intends to distribute non-protocol revenue to AAVE tokenholders. This revenue includes fees and income not generated directly from lending services. The move aims to add value to AAVE beyond governance, potentially increasing the token’s appeal to investors.

In the same statement, he acknowledged the backlash to the earlier vote and confirmed that a new governance proposal would be submitted. This future proposal will again address the question of IP and brand rights but will likely incorporate community feedback gathered during the previous process.

The initial proposal’s failure stemmed in part from disagreements over who should control revenue from swaps routed through third-party services like CoW Swap. Some argued that these should benefit AAVE holders through the DAO, while others felt the developers at Aave Labs should retain control.

Dispute Over Control of Ecosystem Revenue

The core of the recent debate focused on fee distribution rights. CoW Swap allows users to perform token swaps directly within Aave. The resulting revenue sparked debate over whether it belongs to the DAO or to Aave Labs developers.

This issue intensified community concerns about governance, control, and transparency. Several DAO participants emphasized the need for clarity on how fees are collected and used. The disagreement also raised questions about the role of developers in a decentralized protocol’s decision-making structure.

The governance vote’s outcome reflected a divide in the community over how decentralized Aave should be and who should manage its core assets.

Founder Denies Influence Over Governance Vote

Alongside the governance dispute, Kulechov faced criticism over his recent $15 million purchase of AAVE tokens. Some in the community questioned whether the purchase aimed to influence the governance vote’s outcome.

Kulechov responded to these concerns directly, denying any attempt to manipulate the process. He said the purchase reflected his personal belief in the long-term value of Aave and not an effort to affect governance decisions.

Despite the controversies, Aave remains one of the largest DeFi protocols by total value locked, which stood at over $45 billion as of October 2025.