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- Aave Labs seeks $50M in grants while offering to redirect all product revenue to the DAO.
- Community leaders question treasury impact, token grants, and clarity on revenue reporting.
- The proposal enters Temp Check as Aave Labs pushes a token-centric model and V4 ratification.
Aave Labs has asked tokenholders to approve a funding package worth about $50 million. The proposal would redirect all revenue from Aave-branded products to the Aave DAO treasury. It also introduces a long-term structure for technical development and brand management.
The proposal includes up to $42.5 million in stablecoins. It contains a $25 million primary grant and $17.5 million tied to specific product milestones. The grants, if approved, would be streamed over time. The milestone amounts would be unlocked once products launch.
The proposal also requests 75,000 AAVE tokens. The tokens were worth about $8 million at the time of submission. Aave Labs states that these assets would support its operations under a DAO-funded model. The request marks a major shift in how Aave organizes its development work.
Aave Labs Proposes Full Revenue Shift to DAO
In return, Aave Labs would send 100% of revenue from its products to the DAO. This includes fees from aave.com. It also includes revenue from the planned Aave app and Aave card.
Income from Aave Pro, Aave Kit, and Aave Horizon would also be redirected. The proposal asks tokenholders to ratify Aave V4 as the protocol’s long-term technical base.
The initiative outlines plans for a new foundation. This entity would hold and manage brand assets for the Aave ecosystem. The measure aims to consolidate protocol and product revenue at the DAO level. It would also formalize the technical direction for future upgrades.
The request prompted scrutiny from community members. Marc Zeller of the Aave Chan Initiative said the $50 million ask represents a large share of the treasury. He suggested separating the proposal into multiple votes.
He argued that individual topics deserve independent assessment. Zeller also asked for clearer definitions of revenue. He requested independent verification of the income that will flow to the DAO.
Zeller raised concerns about the 75,000 AAVE token grant. He noted that governance tokens carry voting rights. Any entity receiving such tokens should disclose its wallet holdings. He called this necessary for transparency in governance.
Analysts Weigh In on Governance Impact
Analyst DefiIgnas described the measure as a major compromise. He said AAVE holders may support the proposal. He also said the DAO should receive clearer disclosures regarding the governance power tied to the token grant. His comments reflected mixed reactions within the community.
Aave Labs presented the proposal as a shift toward a token-centric model. The company said this model strengthens value alignment with the DAO.
Founder Stani Kulechov highlighted on X that routing all of the product’s revenues to the DAO will enable it to fund growth. This will allow the DAO to do more buybacks and strategic initiatives.
This comes after a failed vote in December. Tokenholders voted down a motion to transfer brand assets to an entity controlled by the DAO. Kulechov later revealed a plan to restructure non-protocol revenues. This announcement formalizes part of this strategy.
This funding package is in the Temp Check stage. This stage is used to test support before a binding vote. If it succeeds, it will go through additional governance voting phases. Funds would be distributed only after full approval.
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