Aave founder Stani Kulechov is once again under scrutiny from parts of the crypto community after purchasing $10 million worth of AAVE tokens shortly before a closely watched board vote.
Critics claim the move was intended to increase its voting power, rather than signal long-term alignment with token holders.
The accusation surfaced publicly this week after Robert Mullins, a decentralized financial strategist and liquidity specialist, said at X that the purchase seemed timed to influence an upcoming vote.
Mullins argued that the transaction exposes structural weaknesses in token-based governance systems, where large holders can quickly amass influence without long-term commitments.
He wondered whether similar behavior would occur under governance models that require tokens to be locked for longer periods.
The unrest in Aave’s board exposes fault lines over power and transparency
These concerns were echoed by prominent crypto user Sisyphus, who be on blockchain data suggesting Kulechov sold millions of dollars worth of AAVE between 2021 and 2025.
Although no wrongdoing has been found, critics question the economic rationale for selling large quantities over several years before making a significant purchase ahead of a controversial vote.
The debate has unfolded against a broader governance dispute within the Aave ecosystem over control of the protocol’s brand and its associated assets.
On December 22, Aave Labs submitted a proposal to Snapshot regarding ownership of key brand assets, including the aave.com domain, social media accounts, GitHub organizations and naming rights.
The proposal was written by Ernesto Boado, co-founder of BGD Labs, but Boado made it public rejected the decision to put it to a vote, saying he had not been informed and did not support the version submitted.
Boado said the move damaged trust during what he described as a productive forum discussion and argued that the proposal was intended to transfer brand assets into a DAO-controlled legal package with strong protections against seizure.
Tensions around Aave are rising over brand use, reimbursement flows and voting for whales
The initiative followed participants’ growing concerns that brand assets were being used to support private products without the DAO being the primary beneficiary.
Recent examples cited by critics include Aave Labs replace Paraswap with CowSwap, a change estimated to divert approximately $10 million per year in fees away from the DAO and Horizon market launchwhich generated approximately $100,000 in revenue while using approximately $500,000 in DAO incentives.
Marc Zeller of the Aave Chan Initiative said the DAO had effectively paid for these assets multiple times over through the original LEND token sale, dilution, liquidity mining programs, and service provider fees.
Kulekhov defended the hasty vote, proverb discussion had already taken place and that submitting proposals outside extensive processes was not unprecedented. He said the issue should ultimately be resolved through a vote.
Several observers, including crypto educator Duo Nine, increased concerns about conflicts of interest as founders maintain influence through private companies while shaping DAO outcomes.
Voting data has further fueled the debate. Samuel McCulloch of USD.ai noted that a small number of large holders account for a significant portion of the voting rights.
Snapshot data shows the three largest voters control more than 58% of the vote, while the largest pockets control more than 27%.
The controversy comes shortly after regulatory pressure on Aave eased.
On December 16, Kulechov announced that the U.S. Securities and Exchange Commission had concluded its multi-year investigation into the protocol without recommending enforcement action, ending nearly four years of uncertainty.
Aave Labs has also secured and is receiving MiCA authorization in Europe prepare for the launch of Aave V4.
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