Aave Labs Founder Maps New Strategy After Governance Clash

• Kulechov plans to share off-protocol revenue with AAVE holders to resolve DAO disputes.
• Governance reforms aim to stabilize Aave while supporting independent product builders.
• Aave targets real-world asset lending and modular architecture for long-term growth.

Aave founder Stani Kulechov published a detailed statement on January 2, 2026, addressing a governance dispute between Aave Labs and the Aave DAO. The post followed weeks of debate over frontend fees, branding control, and revenue ownership across the protocol’s ecosystem. 

Kulechov explained why the conflict emerged, how it escalated, and what structural changes he believes are required to stabilize governance and future growth. According to Kulechov, the dispute exposed deeper alignment gaps between protocol governance and the company driving most development. He said those gaps risk slowing innovation if left unresolved. From there, he shifted focus toward defining a broader growth path.

Governance Tensions and Revenue Sharing Commitments

The dispute started when DAO members asked why Aave Labs was keeping frontend fees instead of giving them to the DAO. Tokenholders felt these fees should belong to the protocol. Aave Labs originally built the frontend, but the DAO now runs most of the protocol.

In December, a proposal was made to move Aave’s branding into DAO control. Still, some governance members worried about how Aave Labs would operate after that change. The centralized entity currently handles most research, engineering, and product execution.

Kulechov responded by committing to revenue sharing beyond the core protocol. According to his statement, Aave Labs plans to share profits generated outside the protocol with AAVE tokenholders. This includes revenue from frontend applications, integrations, and future product lines.

He said Aave Labs will submit a formal governance proposal detailing distribution mechanisms and safeguards. The proposal will also clarify branding ownership and usage rules. Importantly, Kulechov emphasized that alignment remains essential for DAO credibility.

Market participants reacted quickly to the announcement. According to market data, AAVE’s price rose more than 10 percent following the update. Delegates, however, said enforceable structures matter more than public commitments.

Strategic Shift Beyond Crypto-Native Lending

Beyond governance, Kulechov outlined concerns about Aave’s current growth movement. He said most lending activity still centers on ETH, BTC, and leverage-driven strategies. However, he reminded readers that Aave’s original 2017 vision targeted lending across all asset classes.

According to Kulechov, that vision is unfinished. He said Aave could eventually support a $500 trillion asset base through real-world assets. Achieving that scale requires broader lending models, not only crypto collateral.

Traditional finance firms are now entering digital asset markets with deep capital reserves. As a result, Kulechov said Aave must expand while maintaining its DeFi position. That balance requires structural changes at the protocol level.

He pointed to Aave V4 as a key component of that plan. The upgrade introduced modular architecture that isolates risk across different asset types. This structure supports real-world asset lending, custodian-based borrowing, and brokerage account integration.

Kulechov noted that institutional demand already exists. He said discussions with financial institutions informed the modular hub-and-spoke design. That design allows innovation without exposing the core protocol to concentrated risk.

Related: Aave Founder Says DAO Revenue Hit $140M, Vote Claims Denied

Consumer Products, Autonomy, and Protocol Alignment

Kulechov also talked about how consumer-facing products help bring in more users. He said getting millions onboard means creating products that keep the tech side simple and out of sight. Making these products takes money, legal work, and fast execution.

However, he stated the DAO should not fund application-layer products. According to Kulechov, decentralized governance cannot manage product decisions efficiently. Traditional competitors spend hundreds of millions on user acquisition.

Instead, he proposed that independent teams build on Aave’s permissionless protocol. These teams stay independent while helping more people use the protocol. At the same time, the protocol benefits from the extra activity and fees.

He also pointed out that companies outside the protocol can still work with tokenholders. Revenue sharing makes sure everyone involved benefits when those outside projects succeed. This structure, he said, avoids slowing builders while preserving economic alignment.

Kulechov also acknowledged branding disputes within the community. He said upcoming proposals will include guardrails protecting DAO interests. At the same time, they will allow teams to operate commercially.

Meanwhile, Kulechov’s statement addressed governance conflict, revenue sharing, and protocol direction in a single framework. He confirmed plans to share off-protocol revenue while expanding Aave beyond crypto-native lending. The proposed changes aim to stabilize governance, support independent builders, and align long-term protocol growth.