Aave Founder Under Scrutiny for $10M Token Purchase Amid Governance Drama
- Aave founder Stani Kulechov bought $10 million worth of AAVE tokens ahead of a key DAO vote
- Critics claim the purchase boosted his governance voting power
- Community members raised concerns over governance manipulation and insider influence
- The controversy centers on a proposal to reclaim control of Aave’s brand assets
- The debate has reignited concerns about voting power concentration in DeFi DAOs
Aave founder Stani Kulechov is facing renewed scrutiny from the crypto community following a $10 million purchase of AAVE tokens ahead of a major governance vote, with critics questioning whether the move was intended to influence the outcome.
In a Wednesday post on X, DeFi strategist Robert Mullins claimed the token purchase was designed to increase Kulechov’s voting power “in anticipation to vote for a proposal directly against the token holders’ best interests.” Mullins argued the situation highlights structural weaknesses in token-based governance models that fail to sufficiently discourage governance attacks.
Prominent crypto commentator Sisyphus echoed the criticism, alleging that Kulechov may have sold millions of dollars worth of AAVE between 2021 and 2025, raising questions about the economic logic behind the sudden accumulation.
Governance Vote Triggers Community Backlash
The controversy comes amid an ongoing dispute over an Aave governance proposal focused on reclaiming control of the protocol’s brand assets. The proposal seeks approval for AAVE token holders to regain ownership of domains, social media accounts and intellectual property through a DAO-controlled legal structure.
The vote was pushed to a Snapshot poll despite unresolved debate, triggering backlash from several stakeholders who argued the escalation was premature. Former Aave Labs CTO Ernesto Boado, listed as the proposal’s author, said the vote advanced without his consent, calling the move a breach of community trust.
The situation has intensified scrutiny around how governance decisions are initiated and escalated within one of DeFi’s largest lending protocols.
Voting Power Concentration Raises Alarm
Concerns over the token purchase have also reignited broader debates about voting power concentration within the Aave DAO. Samuel McCulloch of USD.ai described the governance process as “silly,” noting that a small group of large token holders controls a disproportionate share of voting power.
Snapshot data shows that the top three voters collectively account for more than 58% of the total voting weight. The largest wallet alone controls over 27% of voting power, while the second-largest holds more than 18%.
Critics argue that such concentration undermines the core promise of decentralized governance, particularly when founders or early insiders retain the ability to significantly sway outcomes during high-stakes votes.
Final Thoughts
The dispute highlights a recurring challenge across DeFi: balancing founder influence with decentralized decision-making. As protocols mature and governance stakes rise, token-based voting systems continue to face pressure to evolve in ways that better protect minority holders and preserve trust.
Cointelegraph reached out to Kulechov for comment, but no response had been received at the time of publication.
