- Stani Kulechov said DeFi has matured through stablecoin growth, institutional participation, and expanding regulatory frameworks.
- Aave Labs proposed directing all product revenue to the DAO treasury while requesting $25 million, 75,000 AAVE, and future grants.
- Marc Zeller criticized the proposal, arguing its scale and structure raise concerns about governance authority and DAO oversight.
Aave founder Stani Kulechov outlined nearly a decade of decentralized finance growth while Aave Labs introduced a new governance proposal for the protocol. The proposal, presented on Thursday, would direct all product revenue to the AAVE DAO treasury while requesting operational funding, drawing immediate criticism from Aave Chan Initiative founder Marc Zeller over its scale and structure.
Kulechov Highlights DeFi Expansion
According to Stani Kulechov, the DeFi sector has moved from an experimental market into a broader financial ecosystem. He pointed to more than $300 billion in on-chain stablecoins and protocols generating verifiable revenue.
Kulechov also cited interest-bearing stablecoins, embedded wallets, and growing fintech participation as signs of industry development. He referenced products and companies including PyUSD, SoFi, Western Union, MoneyGram, Stripe, Tempo, and Whop.
In addition, Kulechov said major banks and asset managers, including Fidelity and BlackRock, have established digital asset teams. He also highlighted regulatory developments, including the GENIUS Act, the proposed CLARITY Act, Europe’s MiCA framework, and ongoing work in the United Kingdom.
Aave Labs Seeks Treasury Funding
At the same time, Aave Labs submitted a non-binding governance temperature check called the “Aave Will Win Framework.” The proposal would route all product revenue into the AAVE DAO treasury.
In return, Aave Labs requested $25 million in stablecoins and 75,000 AAVE tokens for operations. The proposal also includes an additional $17.5 million in grants tied to future product deployments.
According to the proposal, the funding would support activities that Aave Labs previously financed outside core protocol development.
Governance Debate Emerges
Marc Zeller, founder of the Aave Chan Initiative, challenged the proposal shortly after its release. He described the request as a large extraction attempt presented without earlier DAO consultation.
Zeller argued that the proposal followed a pattern where large initial demands later become negotiating positions. He also questioned whether governance retains meaningful authority if outcomes can effectively be predetermined.
Meanwhile, Kulechov said the industry’s progress has been driven by continuous building and long-term participation, adding that broader adoption will take time.