Aave Founder Responds to Governance Vote With New Strategy


Aave founder and CEO Stani Kulechov has outlined a broader strategic vision for the protocol following a contentious governance vote that rejected a proposal to transfer control of Aave’s brand assets and intellectual property to its decentralized autonomous organization (DAO).

The failed vote has prompted renewed debate within the Aave community over the protocol’s long-term direction and governance structure, an issue Kulechov addressed directly.

In a post published Friday on the Aave governance forum, Kulechov argued that the protocol must evolve beyond its core decentralized finance (DeFi) lending business to pursue opportunities in real-world assets (RWAs), institutional lending and consumer-facing financial products. 

He described the community as being “at a crossroads,” noting that DeFi’s future growth trajectory remains uncertain without broader market expansion.

Significantly, Kulechov said Aave Labs plans to distribute non-protocol revenue to Aave (AAVE) tokenholders, a move that could expand how the token captures value beyond governance participation. He added that Aave Labs plans to introduce a new governance proposal to address intellectual property ownership and brand-related rights, following community pushback against the earlier initiative.

Kulechov’s post appears aimed at refocusing the community away from short-term governance disputes and toward a more cohesive long-term strategy. He highlighted RWAs in particular, describing the sector as a potential $500 trillion opportunity based on the estimated value of global financial assets.

Aave is one of the largest DeFi protocols, with its total value locked exceeding $45 billion in October, according to industry data

Source: Kolten

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The controversy at the heart of Aave governance

As Cointelegraph reported, Aave’s recent governance dispute centers on who should control and benefit from fees generated by cryptocurrency swaps within the ecosystem.

Some of those swaps are routed through CoW Swap, a decentralized trading service that allows users to exchange tokens directly from Aave. The disagreement arose over whether revenue tied to these swaps should belong to the Aave DAO, which represents tokenholders, or remain under the control of developers at Aave Labs.

The results of Aave’s governance vote on Monday. Source: Cointelegraph

Some members of the Aave community also pointed to Kulechov’s recent purchase of roughly $15 million worth of AAVE tokens as an attempt to influence the governance vote, a claim he strongly denied, saying the purchase reflected his personal “conviction” in the protocol rather than an effort to sway the outcome.

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