DeFi protocol Aave to start sharing profits? Officially hints for the first time, revenue sharing and governance disputes summarized

Governance Vote Failure Prompts Aave Labs to Share Non-Protocol Revenue with AAVE Holders

Following a highly controversial governance vote, Aave founder and CEO Stani Kulechov issued a rare post on the official governance forum, systematically outlining the future development direction of Aave. For the first time, he explicitly stated that Aave Labs intends to share “non-protocol income” with $AAVE token holders.

This statement is seen as Aave Labs extending an “olive branch” to the DAO community. Previously, $AAVE holders rejected a proposal that aimed to transfer all brand assets and intellectual property rights of Aave to DAO management, sparking intense debate over rights and responsibilities, value capture, and governance boundaries. Kulechov openly stated that Aave is at a “critical crossroads” and that remaining solely in the crypto-native lending market will be difficult to sustain long-term growth.

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Value Attribution as Core Conflict, DAO and Labs Tensions Surface

The trigger for this governance controversy was related to the allocation of certain transaction and front-end fees within the Aave ecosystem. Some token swaps are routed through CoW Swap, but the associated fees ultimately flow into wallets controlled by Aave Labs, not the Aave DAO. This decision has been criticized by some community members as “covert privatization,” which they argue contradicts the spirit of decentralized governance.

Opponents argue that any economic benefits derived from using the Aave brand and protocol influence should revert to the DAO; otherwise, it erodes the value basis of $AAVE as a governance token. Some community representatives pointed out that past uncertainties regarding governance and income attribution have impacted $AAVE 's market confidence, even affecting multi-billion dollar market cap performance at times.

In response, Kulechov denied any deliberate manipulation of governance and emphasized that his recent increased holdings of $AAVE are purely based on personal long-term conviction.

Stepping Out of the DeFi Comfort Zone, Aave Looks Toward RWA and Institutional Markets

While addressing the controversy, Kulechov also seeks to steer the discussion toward long-term strategy. He pointed out that the global financial asset market is approximately $500 trillion, with DeFi lending only touching a tiny fraction of that. To break through growth bottlenecks, Aave must move toward real-world asset tokenization, institutional-grade lending, and financial products aimed at everyday consumers.

He further mentioned that future protocol upgrades will adopt a more modular design, allowing different trust assumptions to operate on the same infrastructure while isolating risks. Such an architecture is viewed as key to bringing real-world assets (RWA), such as real estate and debt claims, into on-chain finance.

Aave Labs’ positioning will be “building purpose-driven products on permissionless protocols,” while the protocol itself aims to capture long-term value through usage growth and fees.

Can Revenue Sharing Resolve Disputes? Governance Structure Still Needs Next Steps

Although Aave Labs has signaled goodwill by proposing “non-protocol revenue sharing,” the specific implementation, sharing ratios, and relation to brand and IP rights remain to be clarified through formal proposals.

Some community members argue that only by clearly keeping core brand assets under DAO control and establishing enforceable licensing and dispute resolution mechanisms can governance risks be truly mitigated.

As Aave continues to expand its application boundaries, balancing decentralized governance, business efficiency, and token value has become a microcosm of the entire DeFi industry. Whether Aave’s revenue sharing promise can be institutionalized into consensus will be an important indicator of whether DAO governance is maturing.