Aave Labs proposes sending all revenue to Aave DAO

Aave Labs has floated a new plan that could send all product revenue to the Aave community.

Aave Labs has unveiled a new governance proposal that could reshape how revenue flows within the Aave ecosystem. In a non-binding “temperature check” posted on Feb. 12, the company asked the community whether it would support sending all product-related revenue directly to the DAO.

The proposal, titled “Aave Will Win,” suggests that income from Aave-branded products should be re-directed to the protocol’s governing body, Aave DAO, rather than remaining with the development team.

A plan to redirect revenue to the DAO

Under the proposal, Aave Labs wants 100% of revenue from its products to flow into the DAO treasury. This includes swap fees from Aave v3 and the upcoming v4, earnings from the official aave.com interface, and income from future ventures such as the Aave Card and possible ETF-related products.

If approved, this structure would place token holders at the center of value creation. Supporters say it could reduce concerns about “value leakage,” where parts of the ecosystem generate income without benefiting the DAO.

The plan also includes creating a new foundation to hold Aave’s trademarks and intellectual property. This entity would manage the brand on behalf of the community, rather than leaving those assets under company control.

At the same time, Aave Labs is asking for long-term financial support from the DAO. The proposal requests $25 million in stablecoins, 75,000 Aave (AAVE) tokens, and additional grants tied to specific products. 

A more open budget system would allocate these funds to operations, marketing, and development. Aave founder Stani Kulechov said the framework is designed to establish a “token-first” relationship between the DAO and its primary developer. 

Community reaction and open questions

Aave community’s response to the proposal has been mixed. Since protocol success directly benefits AAVE holders, some token holders view it as a significant step toward greater alignment. They argue that the model’s value returns are more obvious and that it resembles a shareholder structure in traditional finance. 

Some are more cautious. Critics question whether Aave Labs is actually giving up economic power and point to the size of the funding request. Marc Zeller and other commentators have raised concerns that the upfront payments could offset much of the revenue being redirected.

The dispute comes after months of conflict over control and ownership. After Aave Labs re-directed interface fees away from the DAO in late 2025, they faced major criticism. Following that incident, token holders attempted in vain to take over the company’s intellectual property. 

Since that time, Aave Labs has scaled back several side projects and refocused on core lending products. The “Aave Will Win” proposal appears to be part of that reset.

The framework is still only a preliminary signal check for the time being. It would proceed to the official voting stages if there is substantial community support. Future governance decisions and the DAO’s ability to effectively manage a multibillion-dollar brand will determine whether the model proves sustainable.