- Aave founder Kulechov faces scrutiny for buying 10 million dollars of AAVE before a key DAO vote.
- Top three voters control over 58% of Aave DAO voting power raising governance concerns.
- Community debates fairness as large token purchases may influence important Aave governance decisions.
Stani Kulechov, the founder of Aave, is undergoing criticism following the purchase of 10 million AAVE tokens. Opponents state the acquisition will make him more influential in a further governance vote. The transaction has raised concerns about voting power concentration within the protocol. Some community members fear that such purchases could impact decisions against smaller token holders’ interests.
Crypto strategist Robert Mullins suggested the purchase was timed to boost Kulechov’s voting power for a key proposal. Analysts noted that token-based governance might not prevent concentrated influence. They highlighted potential risks when founders or early insiders retain significant economic leverage. The recent acquisition by Kulechov has again sparked the debate on whether the recent DAO mechanisms are effective in protecting the minority stakeholders.
Controversial Governance Proposal Triggers Debate
The scrutiny coincides with a contentious governance vote in the Aave DAO. The proposal concerns reclaiming control of the protocol’s brand assets. It asks whether AAVE token holders should regain ownership of domains, social accounts, and intellectual property through a DAO-controlled legal structure. The escalation of the proposal was criticized by several stakeholders who asserted that it occurred too soon.
The author of the proposal included former Aave Labs CTO Ernesto Boado. He was said to oppose the move to proceed with the vote without consulting the wider community. According to analysts, it is a move that will destroy community trust. Observers have emphasized that such escalation could set a precedent for bypassing normal governance discussion periods. The SEC had concluded its four year investigation into AAVE protocol which examined whether the token and their operations violated U.S securities laws.
Concentration of Voting Power Raises Concerns
Data from Snapshot shows that a few holders dominate the vote. The three largest voters enjoy more than 58% of the overall voting power. The first one has a voting weight of 27.06% and the second-largest is 18.53%. Analysts claimed that this kind of concentration would enable a few individuals to make high-stakes propositions. The scenario underscores ongoing concerns about whether Aave’s token governance adequately balances power.
Some critics highlighted that Kulechov previously sold millions of dollars worth of AAVE between 2021 and 2025. Analysts questioned the economic logic behind buying large quantities now. They suggested that the move could be aimed more at influencing governance than long-term investment.
Impact on the Aave Community
The controversy has divided the Aave community, with debates intensifying over governance fairness. Stakeholders are calling for reforms to prevent excessive influence by a few large holders. Analysts noted that the debate could influence future voting mechanisms and community trust. The situation remains under close observation by both token holders and DeFi analysts.
