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Aave founder faces backlash over $10M token buy ahead of governance vote

Published Dec. 25 2025Last Updated Dec. 25 2025

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Aave founder Stani Kulechov is facing criticism from parts of the crypto community after purchasing around $10 million worth of AAVE tokens ahead of a contentious governance vote.

Critics have questioned whether the timing and size of the purchase were intended to increase his influence over a proposal that has divided token holders.

The controversy has intensified scrutiny of voting power distribution within one of decentralised finance’s largest lending protocols.

Decentralised finance strategist Robert Mullins raised concerns in a post on X about the motive behind the transaction.

This is a clear example of tokens not being equipped to adequately disincentivize governance attacks.

Robert Mullins said.

Mullins also suggested the purchase appeared designed to boost voting power ahead of a proposal that he claimed ran counter to token holder interests.

The debate has reignited broader questions about whether token-based governance can fairly represent smaller holders.

Some community members argue that large insider balances undermine the principles of decentralisation.

The immediate dispute centres on a proposal concerning control of Aave’s brand assets.

These assets include domain names, social media accounts and intellectual property linked to the protocol.

The proposal seeks to place the assets under a DAO-controlled legal structure.

Supporters say this would return ownership and oversight directly to token holders.

Critics objected after the proposal was pushed to a Snapshot vote while discussions were still ongoing.

Several community members said the escalation was premature and curtailed meaningful debate.

Former Aave Labs chief technology officer Ernesto Boado said the vote was advanced without his consent.

He argued the process undermined trust and bypassed efforts to reach broader community alignment.

The procedural dispute sharpened attention on Kulechov’s token purchase.

Some holders questioned whether concentrated voting power allows a small group to dictate outcomes.

Data from the Snapshot vote highlighted the extent of voting concentration within Aave governance.

Figures shared by USD.ai contributor Samuel McCulloch showed a small number of wallets account for roughly half of total voting weight.

It’s silly.

Samuel McCulloch said, referring to the imbalance between large holders and the wider DAO.

Snapshot data showed the top three voters control more than 58% of all votes cast.

The largest wallet holds just over 27% of voting power, equivalent to roughly 333,000 AAVE tokens.

The second-largest voter controls more than 18%, or about 228,000 AAVE tokens.

Prominent crypto commentator Sisyphus also weighed in on the debate.

He claimed Kulechov may have sold millions of dollars worth of AAVE between 2021 and 2025.

The claim raised questions about the rationale for selling large positions and later buying back ahead of a major vote.

Kulechov did not respond to requests for comment by publication.

The dispute has reopened a familiar debate across decentralised finance.

Critics argue token-based governance can struggle to protect minority holders.

Supporters counter that transparent on-chain voting remains preferable to opaque decision-making.

As protocols mature, governance decisions increasingly carry legal and economic consequences.

Observers say those pressures are exposing tensions between decentralisation ideals and real-world power dynamics.

At the time of reporting, Aave price was $148.87.