Aave Labs Proposes Redirecting 100% of Revenue to DAO in New Governance Plan

Aave Labs has submitted a proposal to transfer all revenue from Aave-branded products to the Aave DAO treasury while moving intellectual property to a newly formed Aave Foundation. The plan, called the Aave Will Win Framework, aims to recenter token holders as the primary beneficiaries of the decentralized lending protocol and secure funding for Labs’ ongoing operations.

Details of the Proposal

The proposal covers revenue from Aave v3 and upcoming v4 protocols, aave.com front-end earnings, and future business lines such as the Aave Card and AAVE ETF. In exchange for relinquishing revenue and brand assets, Aave Labs requests $25 million in stablecoins, 75,000 AAVE tokens, and additional development grants. Funding would be conditional on verified contributions to the protocol, with annual budgets requiring DAO approval.

Marc Zeller, founder of the Aave Chan wrote in response;

The move comes after a months-long debate over protocol ownership between Aave Labs and the DAO. Critics argue the proposal may benefit Labs financially while framing the transfer as a community-first initiative. The framework also includes the launch of Aave v4, which introduces new revenue streams and a hub-and-spoke model to expand Aave into additional markets, while gradually phasing out v3.

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