After SEC relief, Aave confronts its biggest governance question yet

Aave’s regulatory cloud lifted this week after founder Stani Kulechov confirmed that the U.S. SEC has formally closed its four-year investigation into the protocol. 

But almost immediately, a second development emerged inside the Aave ecosystem. There is a new governance proposal calling for AAVE token holders to take full ownership of the Aave brand, domains, social channels, naming rights, and developer gateways.

If approved, the proposal would trigger one of the most significant decentralization restructurings in DeFi’s history, reshaping how Aave operates and redefining who truly “owns” the protocol.

SEC conclusion clears a major hurdle for Aave

The proposal arrives just days after confirmation that the SEC has ended its multi-year investigation into Aave without recommending enforcement. 

Source: X

While the letter does not represent exoneration, the lack of enforcement is still seen as a major relief for the DAO.

Crucially, the moment aligns with broader industry trends: regulators increasingly evaluate whether DeFi systems are truly decentralized or reliant on core corporate actors.

By transferring brand and identity control to a DAO-owned wrapper, Aave strengthens its decentralization profile at a strategically important moment.

A proposal that challenges the foundations of DeFi governance

The proposal, introduced by BGD Labs co-founder Ernesto Boado, argues that the platform’s most important soft assets — including aave.com, app.aave.com, the “Aave” trademark, X and Discord handles, GitHub organizations, and various communication channels — should never be controlled by private companies.

Instead, Boado says they should be transferred into a DAO-controlled legal entity with strict anti-capture protections.

“A private party, regardless of its past or present role in the community, should not have unilateral ownership and control over them,” he wrote.

“The DAO should control its brand, its gateways, and its identity.”

The proposal stresses that even long-time contributors such as Aave Labs should not possess permanent control over assets that fundamentally represent the broader Aave ecosystem.

What this is not

The author explicitly states that this proposal is not an attack on Aave Labs. It does not:

• Remove Aave Labs as a contributor
• Challenge the legitimacy of Aave Labs’ work
• Attempt to punish or restrict past actions
• Prohibit delegation of responsibilities to contributors

Instead, it aims to define clear ownership boundaries so the ecosystem can operate under a neutral, defensible governance structure.

A pivotal moment for Aave and DeFi

The proposal raises fundamental questions about what decentralization means in practice. For a protocol of Aave’s scale, brand and gateway control are not superficial details. They are governance levers, trust signals, and economic chokepoints.

A shift of this magnitude could:

• Strengthen incentives for independent contributors
• Increase transparency around app gateways
• Reduce governance risk for institutions
• Improve AAVE’s perceived value as a governance asset
• Set a precedent other DAOs may follow

The vote has not yet opened, but early sentiment suggests strong attention from both token holders and governance delegates.

The DeFi platform just closed one chapter with U.S. regulators. This proposal could open another — one that redefines who owns the future of the protocol.

Final Thoughts 

• Aave’s decentralization is entering a new phase where governance extends beyond code and into brand, identity, and public representation.
• How the community votes on this proposal could redefine DAO power structures across the entire DeFi ecosystem.