Aave Labs has introduced a sweeping governance proposal that could significantly reshape the economic and brand structure of the Aave ecosystem. The company is seeking community approval to redirect 100% of revenue generated from Aave-branded products to the Aave DAO treasury.
The proposal, introduced as a non-binding “temp check” on the Aave governance forum, is part of a broader strategic framework titled “Aave Will Win Framework.” It aims to reaffirm token holders as the primary economic beneficiaries of the ecosystem while redefining the long-term relationship between the for-profit R&D company and the decentralized autonomous organization governing the protocol.
If approved, the initiative would represent one of the most ambitious experiments in DAO-led brand ownership within DeFi.
What Revenue Would Be Redirected?
Under the proposal, all revenue streams tied to Aave-branded products would flow directly into the DAO treasury. These include:
Swap fees from current and future protocol versions
Revenue generated through the aave.com interface
Future verticals such as the Aave Card
Potential AAVE-related ETF products
Other forthcoming ecosystem initiatives
In addition, Aave Labs has proposed the creation of a new Aave Foundation entity to hold intellectual property, trademarks, and brand assets on behalf of the ecosystem.
Such a structural shift would effectively position the DAO as the economic owner of one of the largest DeFi brands by total value locked (TVL).
Background: Months of Governance Tension
The proposal follows months of friction between Aave Labs and segments of the DAO community regarding revenue control and brand ownership.
In December, controversy emerged when swap fees from the aave.com interface — previously routed to the DAO treasury — were redirected to a wallet controlled by Aave Labs. The move triggered debate over whether the DAO or the founding company holds ultimate control over Aave’s brand and monetization strategy.
In response, a token holder introduced a so-called “poison pill” proposal that would have transferred intellectual property, trademarks, codebase control, and even corporate equity under DAO authority. Although that proposal did not pass, it intensified discussions about governance transparency and economic alignment.
Following the dispute, CEO Stani Kulechov began opening dialogue around a more structured partnership model between Aave Labs and the DAO.
Simultaneously, Aave Labs initiated a strategic restructuring, scaling back non-core Web3 initiatives. The company divested its social protocol Lens and discontinued its Family wallet product to refocus exclusively on DeFi lending infrastructure.
Aave v4: The Core of the Strategic Pivot
A major component of the “Aave Will Win Framework” is the upcoming deployment of Aave v4 — a next-generation protocol architecture reportedly under development for several years.
According to Aave Labs, v4 introduces a modular “hub-and-spoke” architecture enabling:
Expansion into new markets and use cases
Independent risk parameters per deployment
Customizable revenue models
Enhanced capital efficiency
For context, Aave v3 currently generates over $100 million in annualized revenue. The new architecture is designed to unlock revenue streams that were structurally difficult under previous versions.
The proposal suggests that the DAO prioritize v4 development while gradually reducing feature expansion on v3. A phased transition over 8–12 months after v4 launch could encourage user migration via parameter adjustments.
Operational Funding in Exchange
In return for transferring revenue rights and brand assets to the DAO and new foundation, Aave Labs is requesting a substantial operational funding package:
$25 million in stablecoins
75,000 AAVE tokens
Product-specific milestone-based grants
The breakdown includes:
$5 million upfront
$20 million disbursed over 12 months
75,000 AAVE vested linearly over two years
Three $5 million grants for Aave App, Aave Pro, and Aave Card
$2.5 million for Aave Kit development
Aave Labs emphasizes that most funding would be milestone-based and subject to annual DAO approval to ensure accountability.
Historically, Aave Labs has self-funded much of its ecosystem expansion, turning to the DAO primarily for core protocol development and strategic marketing initiatives. The company argues that this new framework would secure long-term competitiveness and innovation capacity for the next decade.
Criticism and Governance Concerns
Not all community members are convinced.
Marc Zeller, founder of the Aave Chan Initiative and a prominent governance participant, suggested the proposal may resemble a negotiation tactic — presenting an initially aggressive ask before softening terms.
He also characterized the funding request as effectively extracting up to $50 million in value from the DAO without sufficient preliminary discussion.
While acknowledging that token holders ultimately decide the outcome, critics argue that governance quality and process transparency are equally important as economic alignment.
A Major Governance Experiment in DeFi
If implemented, the proposal would position Aave DAO as the direct economic steward of a multi-billion-dollar DeFi brand — an unprecedented governance model at this scale.
The outcome could set a precedent for how decentralized organizations and founding development companies coordinate brand ownership, intellectual property rights, and revenue sharing in the evolving DeFi landscape.
The governance vote will likely be closely watched across the broader crypto ecosystem.
This article is for informational purposes only and does not constitute financial or investment advice. Readers should conduct independent research and carefully assess risks before making any investment decisions.
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