What Did Stani Kulechov Propose to Token Holders?
Aave founder Stani Kulechov said Aave Labs may begin sharing revenue generated outside the core protocol with AAVE token holders, marking a notable shift in how value could flow to the community. The statement came in a governance post on Friday, following weeks of friction between Aave Labs and the protocol’s decentralized autonomous organization over fees, branding, and long-term control.
“Given the recent conversations in the community, at Aave Labs we are committed to sharing revenue generated outside the protocol with token holders,” Kulechov wrote. He added that a formal proposal outlining the structure and mechanics of such distribution would follow.
The proposal would not affect protocol-level fees generated directly by the Aave lending markets. Instead, it would apply to revenue earned by Aave Labs from products and services built around the protocol. If implemented, the move could expand the token’s economic role beyond governance participation.
Investor Takeaway
Why Did the Governance Dispute Emerge?
The current debate traces back to a community challenge over an Aave Labs decision to redirect frontend fees away from the DAO. Although Aave Labs created the original protocol, day-to-day governance and maintenance are now handled by the DAO, which represents token holders. That division of responsibility has long been understood, but questions around revenue ownership and intellectual property have recently moved to the forefront.
Tensions escalated after a governance proposal sought to transfer control of Aave’s branding and intellectual property from Aave Labs to the DAO. The proposal was rejected, triggering broader discussion about who should control the protocol’s identity and how future products should be governed.
Kulechov’s response framed the disagreement as part of a larger conversation about alignment rather than a zero-sum conflict. He said both sides need a shared long-term vision if Aave is to grow beyond its current crypto-native lending base.
How Does Aave Labs See the Protocol’s Future?
In his post, Kulechov argued that Aave must expand into new asset classes and lending models to sustain growth. He pointed to real-world assets, institutional lending, and consumer-facing financial products as areas where decentralized finance could intersect with traditional markets.
“We believe the most effective path forward is to allow opinionated teams to build products independently on top of the permissionless Aave Protocol, while the protocol itself captures upside through increased usage and revenue,” he wrote.
Under this framework, Aave Labs would continue developing products, while the protocol benefits indirectly through higher activity and broader adoption. Revenue sharing from non-protocol sources would serve as an additional alignment mechanism between builders and token holders.
Investor Takeaway
What Other Issues Remain Unresolved?
Beyond revenue sharing, branding and intellectual property remain open questions. Kulechov said Aave Labs plans to follow up with another governance proposal focused specifically on brand-related rights, responding to calls for greater DAO involvement in those assets.
The dispute has also drawn attention to recent AAVE token purchases by Kulechov, totaling roughly $15 million. Some community members suggested the timing raised governance concerns, an accusation Kulechov rejected, saying the purchase reflected personal conviction rather than an attempt to influence voting outcomes.
At its core, the debate reflects a broader challenge faced by mature DeFi protocols: balancing decentralized governance with the practical realities of product development, branding, and revenue generation. As Aave continues to rank among the largest lending platforms by total value locked, how it resolves these questions could influence governance norms across the sector.
