Achieving $1.4 billion in revenue, but internal conflicts within Aave DAO are intensifying

In 2025, Aave DAO’s annual governance revenue reached $140 million, a historic achievement that surpasses the total income of the past three years in a single year. However, behind this figure lies deep-rooted conflicts related to the protocol’s transparency and fund allocation.

Founders’ Intervention and Doubts About Voting

Founder Stani Kulechov recently claimed that a token purchase equivalent to $15 million did not influence the recent voting results regarding brand ownership and profit sharing. However, this statement itself highlights trust issues in the decision-making process. The gap between the DAO’s original ideal of “decentralized governance” and reality is causing community concerns.

Over $40 million Bushed Away from “Original Allocation”

The most notable issue is the flow of funds. In December, over $10 million in swap fees from CoW Swap were directly sent to Aave Labs instead of the DAO’s official treasury. This move alone accounts for a decision involving approximately $40 million in fund allocation, drawing strong backlash from the community. The structure where funds that should be decided collectively by the DAO are preferentially allocated to specific departments is problematic.

Trust in Governance Being Tested

The rapid increase in revenue is a sign of success, but at the same time, how the increased funds are managed and allocated remains unclear. Operations lacking transparency could undermine the long-term viability of Aave DAO. Reforming the governance system to better reflect community voices is an urgent priority.