Aave Founder Outlines Future Strategy Following Governance Vote Against IP Transfer

Stani Kulechov has initiated a new dialogue within the Aave community after a contentious governance vote rejected a proposal aimed at transferring control over the protocol’s brand assets and intellectual property to its decentralized autonomous organization (DAO).

Key Takeaways

The founder of Aave believes the protocol needs to evolve beyond decentralized finance (DeFi) lending for sustained growth.
Aave Labs plans to share non-protocol revenue with AAVE token holders and will re-examine the proposal regarding IP management.
Ongoing governance tensions remain concerning fees and control, even as the SEC concludes its investigation.

The recent vote brought renewed discussion around Aave’s future direction and how value is allocated between tokenholders and key contributors.

In a post on the Aave governance forum this past Friday, Kulechov expressed that the protocol is at a critical juncture, suggesting that growth driven solely by DeFi lending may not be sufficient to support its next phase of evolution.

Aave Founder Outlines Future Strategy Following Governance Vote Against IP Transfer

Aave's Founder Emphasizes Expansion Beyond Core Lending

Kulechov proposed that Aave should broaden its focus beyond its primary DeFi lending operations, exploring avenues such as real-world assets, institutional credit options, and consumer-oriented financial products.

He cautioned that without expanding into these areas, DeFi could face stagnation due to rising competition and shifting market dynamics.

Describing the ecosystem as “at a crossroads,” Kulechov encouraged the community to prioritize long-term goals over immediate governance conflicts.

A significant aspect of the proposed roadmap involves a new initiative by Aave Labs to allocate non-protocol revenue to holders of the AAVE token. This initiative would transform the token's role, enhancing its value capture beyond just governance voting.

Kulechov also mentioned that a revised proposal about intellectual property and brand rights would soon be introduced, following strong opposition to the initial suggestion. This strategic approach aims to reconcile a community that has become divided over issues of control and revenue distribution.

He singled out real-world assets as a promising opportunity for growth, noting that global financial assets are valued at around $500 trillion, a market he believes can increasingly incorporate on-chain finance.

As one of the largest DeFi protocols, Aave’s total locked value exceeded $45 billion in October, demonstrating its impact even amidst broader industry challenges including slow growth rates and regulatory pressures.

Governance Disputes Focused on Fees and Revenue Distribution

The core of the governance dispute revolved around fees generated from token swaps conducted via platforms like CoW Swap, which enable users to exchange tokens directly through Aave.

Some community members argued that these revenues should go to the DAO, while others advocated for keeping them with Aave Labs to support ongoing development.

Tensions were further intensified by Kulechov’s recent acquisition of approximately $15 million worth of AAVE tokens. Critics claimed that this purchase was an effort to influence the governance vote; however, Kulechov defended his actions, asserting that it stemmed from personal conviction rather than a vote manipulation attempt.

Recently, the US Securities and Exchange Commission (SEC) finalized its multi-year investigation into the Aave Protocol without suggesting any enforcement actions, marking the end of nearly four years of regulatory ambiguity for one of the most utilized lending platforms in decentralized finance.