Aave Labs has introduced a new governance framework titled “Aave Will Win,” proposing to redirect 100% of revenue from all Aave-branded products to the DAO treasury.
The proposal includes a requested funding package for Aave Labs totaling $25 million in stablecoins and 75,000 AAVE tokens, alongside milestone-based grants.
The framework formally ratifies Aave V4 as the protocol’s future technical foundation, aiming to streamline revenue from interfaces, mobile apps, and institutional products.
Aave Labs, the primary development firm behind the leading decentralized lending protocol, has submitted a sweeping governance proposal aimed at resolving long-standing tensions over revenue allocation and brand ownership. The “Aave Will Win” framework, currently in the temperature check phase, suggests a fundamental shift where 100% of gross revenue generated by Aave-branded products—including the aave.com interface, the Aave mobile app, Aave Card, and Aave Pro—would flow directly into the Aave DAO treasury.
The move comes after months of community scrutiny regarding how fees from front-end integrations were routed. By “hard-coding” this revenue alignment, Aave Labs seeks to position the AAVE token as the central point of value accrual. According to the proposal, the DAO would capture substantial new inflows, including approximately $10 million in annualized swap fees and potential future revenue from Aave V3, which currently generates over $100 million in protocol-level earnings annually.
In exchange for relinquishing these revenue streams, Aave Labs is requesting a comprehensive funding package to sustain its operations. This includes an upfront payment of $5 million in stablecoins, followed by $20 million streamed over one year, and 75,000 AAVE tokens (worth roughly $8.5 million at current prices) vesting over 24 months. Additional grants totaling $17.5 million are tied to the successful launch and user acquisition of upcoming products like the Aave App and Aave Card.
“The framework formalizes Aave Labs’ role as a long-term contributor to the Aave DAO under a token-centric model,” stated Stani Kulechov, founder of Aave Labs. “As onchain finance enters a decisive new phase with fintechs and institutions entering, this structure positions the DAO to fund growth and increase buybacks as it sees fit.”
Central to the proposal is the ratification of Aave V4 as the protocol’s canonical version. V4 introduces a “hub-and-spoke” architecture designed to handle trillions in on-chain credit by allowing specialized markets with customized risk parameters. The plan also includes the creation of a new foundation to hold Aave trademarks and intellectual property, ensuring these assets are managed for the benefit of token holders rather than a private entity.
While the proposal has been met with early optimism, some community members have raised questions regarding the $50 million total valuation of the funding request and the logistics of brand management within a decentralized structure. If the temperature check passes, the framework will proceed to a formal Aave Improvement Proposal (AIP) for final on-chain voting.
Disclaimer: This article is for informational purposes only and does not constitute advice of any kind. Readers should conduct their own research before making any decisions.
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