Aave Labs Proposes 100% Revenue Handover to DAO Treasury

Aave Labs has introduced the “Aave Will Win Framework,” a governance proposal to direct 100% of revenue from the project’s branded products to its DAO treasury. This token-centric approach is designed to strengthen the connection between the development team and token holders. 

The proposal includes ratifying Aave V4 as the protocol’s future foundation. It also requests dedicated funding for the ongoing work of Labs and establishes a framework for brand governance moving forward. The announcement follows extended community discussions regarding control and incentives. 

Proposal Details and Strategic Components

Central to Aave’s strategy is the decision to channel all revenue from platforms such as its website, mobile app, Aave Card, Aave Pro, Aave Kit, and Aave Horizon into the DAO treasury. Notably, the transfer will occur after partner payments and incentives are accounted for. This initiative goes beyond the current revenue framework established under AIP-1. 

The plan positions Aave V4 as a key component of its strategy. It features a hub-and-spoke architecture that integrates liquidity while enabling flexible markets for real-world assets and institutional applications. Once V4 is thoroughly audited and tested, Aave V3 will be moved into maintenance mode. 

Additionally, the project is seeking $25 million in stablecoins and 75,000 AAVE tokens to fund efforts in engineering, marketing, and security efforts. Furthermore, it proposes milestone-based grants of $12.5 million tied to key project launches. Additionally, to address previous uncertainties regarding ownership, a foundation aligned with the DAO will manage brand assets. 

Aave’s Proposal Fuels Community Response

Community sentiment on platforms like X strongly backs the initiative, with users often expressing their enthusiasm through the phrase “Aave will win.” Discussions in the governance forum focused on defining clear gating conditions, timelines, and risk management measures before ratifying V4. 

Delegates, however, emphasized the importance of strong oversight to mitigate execution risks and regulatory issues. This framework also seeks to resolve ongoing tensions stemming from previous disputes over brand control, intellectual property, and revenue sharing, which had led to accusations of misalignment. 

Analysts see this as a potential benchmark for balancing contributor incentives with decentralized governance in DeFi. If the proposal passes through the temp-check and subsequent phases, it could significantly diversify DAO income streams and enable treasury activities like token buybacks. 

However, while the proposal promises to enhance value for AAVE holders, its success hinges on effective implementation and community agreement. Overall, the proposal highlights Aave’s goal of evolving into foundational infrastructure for global on-chain finance.

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