Aave Labs has asked token holders to approve a funding package value roughly $50 million in exchange for all revenue from Aave-branded products being redirected to the Aave DAO treasury.
The proposal includes as much as $42.5 million in stablecoins – $25 million in primary funding and $17.5 million in product milestones. It also comprises 75,000 Aave tokens (AAVE), value about $8 million on the time of writing. The stablecoin grants, if approved, will likely be distributed over time and milestone payments will likely be released upon product launches.
In return, Aave Labs would funnel 100% of product-level sales to the DAO. This includes fees generated by aave.com, the proposed Aave App and Aave Card, Aave Pro, Aave Kit and Aave Horizon. The framework also calls for token holders to ratify Aave V4 because the long-term technical foundation of the protocol and descriptions plans to create a foundation for maintaining and managing the Aave brand.
The proposal marks a shift in the best way Aave captures and distributes value. It would consolidate protocol and product revenue on the DAO level while transitioning Aave Labs to a DAO-funded operating model after months of governance tensions.
Source: Aave
Governance concerns regarding voting rights
The funding request was reviewed by some community members. Marc Zeller, founding father of the Aave Chan Initiative, wrote that the $50 million package represents a significant slice of the DAO’s funding.
He called for the vote to be split into separate revenue equalization, V4 ratification, foundation and funding proposals.
Zeller also called for clearer definitions of “revenue” and an independent review of product revenue flowing to the DAO. He expressed concerns concerning the granting of 75,000 Aave tokens, noting that governance tokens have voting rights. He said that corporations receiving DAO tokens should disclose their wallet holdings.
Crypto commentator DefiIgnas described the proposal as a “big compromise” that AAVE holders “would love,” although he also said that clearer disclosures about governance voting rights can be appropriate within the context of the $75,000 AAVE grant.
Aave Labs framed the proposal as a step towards a “token-centric” model that aligns value creation with the DAO. Aave founder Stani Kulechov said on X that funneling product revenue to the DAO would expand its capability to fund growth and other initiatives.
“This would enable the DAO to fund growth, increase buybacks, and pursue other opportunities at its discretion,” Kulechov wrote.
Proposal follows rejected IP vote
The proposal follows one other recent controversial governance episode. On December 26, Aave token holders rejected a proposal to transfer control of the protocol's brand assets to an organization under the DAO, with a majority voting against the measure.
On January 3, Kulechov outlined a broader technique to move beyond decentralized finance (DeFi) lending and rethink how revenue flows to token holders outside of the protocol.
The current proposal formalizes elements of this vision, combining revenue consolidation, V4 ratification and a brand new charter structure right into a single strategic pitch.
The Temp Check, an initial signal vote to measure community support, was launched before any binding on-chain vote. If it progresses, the proposal would undergo additional governance phases before funds are distributed.
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