Aave is preparing for a significant governance vote because the platform will explore sharing a portion of its off-protocol revenue with AAVE token holders and submit a proper proposal to the community.
The update released on January 2, 2025 immediately lifted market sentiment. AAVE rose greater than 10% on the day as traders reacted to signs of improved alignment between the event team and the DAO.
What the brand new Aave proposal will cover
According to the founding father of Aave Labs, the upcoming proposal will explain this how revenue is generated outside of the core lending protocol might be shared with AAVE holders.
These revenues typically come from the official Aave app, front-end swap integrations, and future consumer or institutional products built on top of Aave
It may also include safeguards to guard the Aave DAO and forestall sudden changes that might harm token holders.
Post by Aave founder Stani Kulechov. Source: Aave Governance
Another focus will likely be Control of Aave brand and user gateways. This includes web sites, domains and social media accounts that act as the general public face of Aave.
The proposal goals to stipulate who owns these assets, how they will be used, and what limits there are to monetization without DAO approval.
Additionally, the proposal will shape Aave’s long-term direction. Aave Labs argues that the protocol must transcend just crypto lending and deal with real-world assets, consumer products, and institutional use cases.
These efforts could be based on future upgrades equivalent to Aave V4 and the expanded use of GHO, Aave's stablecoin.
AAVE price increases in response to revenue share plan. Source: CoinGecko
Why this is essential for the DAO
The move follows weeks of public disagreement throughout the Aave ecosystem.
Recently, some delegates accused Aave Labs of getting an excessive amount of control over revenue streams and communication channels. They warned that uncertainty surrounding governance and ownership contributed to a pointy decline in AAVE's market value in recent weeks.
In a response, DAO representatives welcomed the change in tone but emphasized this clear and enforceable obligations are essential. They said vague guarantees weren’t enough and called for precise rules on ownership, revenue sharing and accountability.
The upcoming DAO vote will determine whether this latest framework will likely be further developed.
If approved, it could ease internal tensions and reshape the best way Aave balances growth and governance. If not, the talk over control and direction will likely proceed.
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Article source: beincrypto.com
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