Aave’s Kulechov Floats Revenue-Sharing Plan and RWA Push After DAO Rejects IP Transfer
Aave founder Stani Kulechov has outlined a plan to defuse governance tensions within the lending protocol’s ecosystem, proposing that Aave Labs share non-protocol revenue with AAVE token holders and explore a deeper push into real-world assets (RWAs) and institutional lending. The ideas were presented in a governance forum post following a contentious vote in which the DAO rejected transferring control of brand assets and intellectual property (IP) to on-chain governance.
Governance Rift Comes to the Fore
The latest debate follows a failed proposal that sought to place Aave’s brand and IP under DAO control. Friction has also emerged around front-end fee flows and broader questions about the balance of influence between Aave Labs—the core R&D contributor—and token holders who govern the protocol via Aave Improvement Proposals (AIPs).
AAVE serves as the protocol’s governance token, conferring voting power over parameters such as interest rate models, new asset listings, and fee structures. The dispute has renewed calls from community members for clearer, enforceable economic arrangements between Aave Labs and AAVE holders.
Proposed Measures: Revenue Sharing and Strategic Focus
Kulechov’s post aims to shift focus from short-term disputes to a longer-term roadmap. Key elements include:
- Sharing Aave Labs’ non-protocol revenue with AAVE token holders through a formal, on-chain governance process.
- Revisiting questions of brand and IP stewardship to clarify responsibilities and reduce operational friction.
- Expanding efforts in RWAs and institutional lending, with Kulechov citing the multi-hundred-trillion-dollar scale of global financial assets as a long-run opportunity set.
He argued that aligning incentives between the development organization and token holders—alongside a clearer mandate on growth initiatives—could help stabilize governance and accelerate product development. Aave remains one of the largest decentralized finance lending markets by total value locked, according to industry dashboards.
Community Scrutiny and Next Steps
The revenue-sharing concept was framed as an “olive branch” to token holders, though some DAO participants have urged that any changes be codified through enforceable on-chain mechanisms. Separately, media reports have noted scrutiny of Kulechov’s reported purchase of AAVE tokens in late 2025, with critics warning of potential governance distortions. According to those reports, Kulechov said the tokens were not used in the disputed vote and reiterated his commitment to the protocol’s long-term health.
Aave Labs plans to prepare a formal proposal for the community to consider revenue sharing from off-protocol activities. If advanced to a vote, AAVE holders would ultimately decide on the framework through the AIP process.
What to Watch
- Details of the forthcoming proposal on distributing non-protocol revenue to AAVE holders.
- Any revised approach to brand and IP stewardship between Aave Labs and the DAO.
- Concrete milestones for RWA and institutional lending initiatives.
- Further measures to improve transparency and align incentives between contributors and governance.