Stani Kulechov argues DAO governance needs faster execution models as DeFi protocols compete with traditional finance at massive scale.
Posted March 11, 2026 at 7:18 am EST.
The debate over DAO governance is heating up again and Aave founder Stani Kulechov is pushing for change rather than abandonment. In a recent essay, he argued that DAOs are not broken but the way they operate today often slows innovation.
Kulechov said the traditional DAO process can drag decisions out for weeks through forum debates, temperature checks, and multiple votes. Meanwhile, competitors without those layers can move much faster. Over time, he warned, governance can become politicized as participants form alliances and push competing agendas instead of focusing on building.
His comments follow a recent governance dispute within the Aave ecosystem that led major contributors BGD Labs and the Aave Chan Initiative to step back from the protocol.
This story is an excerpt from the Unchained Daily newsletter.
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Despite the tensions, Kulechov insists the DAO model still has value. He believes token holders should retain control over major decisions and treasury oversight, while execution should be led by focused teams that can ship quickly.
The stakes are large. Aave has already facilitated over $1 trillion in loans and controls roughly 30% of DeFi’s total value locked, but Kulechov argues the goal is much bigger: competing with a global lending market worth tens of trillions.
Read More: The Aave DAO Is Collapsing. Is the Token Still a Good Investment?
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