Aave Labs Proposes Moving Revenue to DAO Amid $50 Million Funding Plan

by

Well now, gather ’round, folks, for Aave Labs has thrown a curveball that would make a cat on a hot tin roof look like it’s just lounging in the sun. They propose to funnel every last cent of their product revenue – that’s a whopping 100% – straight into the coffers of the Aave DAO, all while they’re asking for some hefty backing in return. This has sparked quite the hullabaloo over who holds the reins of this DeFi behemoth!

Oh, What a Tangled Web of Aave Governance!

Aave Labs has rolled out a grand scheme that might just turn the governance and finances of the Aave ecosystem on its head, if not give it a good shake for good measure.

This clever little research and development outfit proposes to send every penny earned from Aave’s various products-be it swap fees from the already popular Aave v3, the much-anticipated v4, earnings from their fancy website aave.com, or even future fancies like the Aave Card and a potential AAVE ETF-right into the warm embrace of the Aave DAO treasury.

They’ve dubbed this brainchild the “Aave Will Win Framework.” And it doesn’t stop there! They want to transfer trademarks and intellectual property over to a shiny new Aave Foundation, cleverly positioning token holders as the big cheeses in this multi-billion-dollar DeFi extravaganza.

This proposal comes hot on the heels of some serious squabbling between Aave Labs and the DAO about who gets to keep the cookies from the jar. Just last December, tempers flared when Labs decided to pocket swap fees for themselves instead of sharing the wealth with the community. An attempt to snatch back Labs’ intellectual property was a bust, yet the negotiations have persisted like a pesky fly at a picnic.

At the heart of this ambitious framework lies Aave v4, a highly-anticipated upgrade that promises to unlock new revenue streams, allowing them to wade into uncharted waters with custom risk parameters. Currently, Aave v3 is raking in over $100 million annually, and Labs suggests a gradual winding down of v3 within the next 8-12 months post-v4 launch. Sounds like a plan, right?

In exchange for handing over the golden egg, Aave Labs is asking for $25 million in stablecoins, 75,000 AAVE tokens to be doled out over two years, plus an additional $17.5 million in grants to help get the ball rolling on product launches like Aave App, Aave Pro, Aave Card, and Aave Kit. Quite the shopping list, I must say!

Now, critics, including the ever-astute Marc Zeller of the Aave Chan Initiative, have raised their eyebrows, claiming this proposal is nothing short of a $50 million extraction masquerading as a noble act of decentralization. He’s questioning the whole governance process, suggesting that the company is trying to pull the wool over everyone’s eyes without proper consultation. Well, isn’t that rich?

The debate now swirls around whether this grand proposal marks a bold leap toward decentralization or simply a brazen power grab in the high-stakes world of DeFi’s most prominent lending protocol.

FAQ🏛️

  • What is Aave Labs proposing?
    To send 100% of product revenue to the Aave DAO treasury. Can you believe it?
  • What happens to Aave’s IP?
    The proposal includes a plan to shuffle Aave’s IP over to a new Aave Foundation. How convenient!
  • How much funding is Labs requesting?
    Up to $50 million in stablecoins, AAVE tokens, and grants. Quite the haul!
  • Why is this controversial?
    Some DAO members see it as a cash-out attempt, and who can blame them?

Read More

2026-02-13 22:00