Aave is preparing for a major governance vote, as the platform will explore sharing some of its off-protocol revenues with AAVE token holders and submitting a formal proposal to the community.
The update, which was published on January 2, 2025, immediately lifted market sentiment. AAVE rose more than 10% that day as traders reacted to signs of better collaboration between the development team and the DAO.
What the new Aave proposal will include
According to the founder of Aave Labs, the upcoming proposal will explain how off-main-protocol lending revenues can be shared with AAVE holders.
These revenues typically come from the official Aave app, swap integrations in the front-end, and future products for consumers or institutions built on top of Aave.
The proposal will also include safety mechanisms to protect Aave DAO and prevent sudden changes that could harm token holders.
Another important focus will be control over the Aave brand and user inputs. This includes websites, domains, and social media accounts that serve as Aave's public face.
The proposal is expected to clarify who owns these assets, how they can be used, and what restrictions exist to profit from them without DAO approval.
The proposal will also shape Aave's long-term direction. Aave Labs believes the protocol must grow beyond crypto lending and move towards real assets, consumer products, and institutional use cases.
These initiatives will depend on future upgrades such as Aave V4 and expanded use of GHO, Aave's stablecoin.
This measure comes after weeks of public disagreement in the Aave ecosystem.
Recently, some delegates have accused Aave Labs of having too much control over revenue sources and communication channels. They warned that uncertainty around governance and ownership has contributed to a sharp decline in AAVE's market value in recent weeks.
In a response, representatives from the DAO welcomed the change in tone but emphasized that clear and enforceable commitments are crucial. They stated that vague promises are not enough and called for precise rules regarding ownership, revenue sharing, and accountability.
The upcoming DAO vote will determine whether this new framework moves forward.
If approved, it could alleviate internal tensions and change how Aave balances growth and governance. If not, it is likely that the debate over control and interaction will continue.