Aave Labs Seeks $50M to Route Product Revenue to Aave DAO
Aave Labs has asked tokenholders to approve a funding package of about $50 million in exchange for directing all revenue from Aave-branded products to the Aave DAO treasury.
The plan requests up to $42.5 million in stablecoins — $25 million as a core grant and $17.5 million contingent on product milestones — along with 75,000 Aave (AAVE) tokens, valued at roughly $8 million at the time of writing.
If endorsed, the stablecoin grants would be streamed over time, with milestone-linked tranches released upon product launches. In return, Aave Labs would remit 100% of product-level revenue to the DAO, including fees from aave.com, the planned Aave App and Aave Card, Aave Pro, Aave Kit and Aave Horizon.
The framework also seeks tokenholder ratification of Aave V4 as the protocol’s long-term technical base and outlines the creation of a foundation to hold and manage the Aave brand.
The proposal represents a shift in how value is captured and distributed, consolidating protocol and product revenue at the DAO level and transitioning Aave Labs to a DAO-funded operating model after months of governance friction.
Governance concerns about voting power
The request prompted scrutiny from several community members. Marc Zeller, founder of the Aave Chan Initiative, noted that the $50 million package represents a sizable share of the DAO treasury and urged splitting the initiative into separate votes covering revenue alignment, V4 ratification, foundation setup and funding.
Zeller also called for clearer definitions of “revenue” and independent verification of product income directed to the DAO. He flagged the 75,000 AAVE token grant given the voting rights attached to governance tokens and said any entities receiving DAO tokens should disclose their wallet holdings.
Crypto analyst DefiIgnas characterized the plan as a “big compromise” that AAVE holders “should like,” while also saying additional disclosure around the voting power tied to the 75,000 AAVE would be appropriate.
Aave Labs described the approach as moving toward a “token-centric” model that aligns value accrual with the DAO. Aave founder Stani Kulechov wrote on X that routing product revenue to the DAO would expand its ability to fund growth and other initiatives. “This would position the DAO to fund growth, increase buybacks, and pursue other opportunities as it sees fit,” Kulechov said.
Proposal follows rejected IP transfer vote
The initiative follows a recent governance dispute. On Dec. 26, Aave tokenholders voted down a proposal to transfer control of the protocol’s brand assets to a DAO-affiliated entity, with a majority opposing the measure.
On Jan. 3, Kulechov outlined a broader strategy to expand beyond decentralized finance (DeFi) lending and reassess how non-protocol revenue reaches tokenholders. The current proposal formalizes parts of that plan, combining revenue consolidation, V4 ratification and a new foundation structure into a single strategic package.
A “Temp Check,” an initial signaling vote to assess community support, has been launched ahead of any binding onchain vote. If it proceeds, the proposal will move through additional governance phases before any funds are disbursed.
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