Aave Founder Proposes Revenue Sharing With AAVE Token Holders After DAO Clash

Aave Labs founder Stani Kulechov has committed to sharing off-protocol revenue with AAVE token holders. The move comes after a governance vote rejected a proposal to transfer brand assets and IP to the DAO. AAVEjumped over 10% on January 2 following the announcement.

The failed vote brought existing tensions to the surface. Some delegates accused Aave Labs of holding too much control over revenue from frontend swap fees and key communication channels like domains and social media accounts.

Kulechov’s recent $15 million AAVE purchase made things worse. Critics claimed he was trying to influence the vote. He denied it, saying the purchase reflected personal conviction.

Kulechov Says Aave Is at a Crossroads

In a post on Aave’s governance forum, Kulechov laid out his concerns about the protocol’s future.

He said Aave’s current lending activity is too dependent on ETH, BTC, and leverage-based strategies tied to crypto market cycles. That model works, but it has limits.

“I believe Aave has the potential to support a $500 trillion asset base through RWAs and other assets over the coming decades,” he wrote.

To get there, Kulechov pointed to Aave V4. The upgrade introduces a modular design that can support real-world assets, institutional credit, and consumer products without putting the core protocol at risk. GHO, Aave’s stablecoin, would play a central role in future yield and savings products.

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What the New Proposal Will Cover

Kulechov confirmed a formal proposal is on the way. It will explain how revenue made outside the core protocol, from the Aave app, swap integrations, and future products, could flow back to AAVE holders.

“We are committed to sharing revenue generated outside the protocol with token holders,” he said.

The proposal will also address control of the Aave brand, including websites, domains, and social accounts. DAO safeguards will be part of the package.

SEC Probe Ends, TVL Holds Strong

Last month, the SEC closed its multi-year investigation into Aave without taking action. That removes a major overhang. Aave’s total value locked currently sits around $56 billion, making it one of the largest DeFi protocols by that measure.

DAO delegates have welcomed the shift but want clear, enforceable terms. The upcoming vote will decide whether the new framework moves forward.

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