AAVE Proposes Off-Protocol Revenue Sharing for Token Holders

Generated by AI AgentCoinSageReviewed byAInvest News Editorial Team
Wednesday, Jan 7, 2026 2:09 am ET1min read
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Aime RobotAime Summary

-

Aave
Labs proposes sharing non-protocol revenue with AAVE token holders via governance to resolve branding control disputes and prevent unilateral decisions.

- The initiative includes front-end app and swap integration earnings, aiming to align company-DAO interests while establishing governance safeguards for brand asset usage.

- AAVE token price rose 10% post-announcement, reflecting optimism about improved stakeholder alignment despite ongoing regulatory risks and technical vulnerabilities.

- The proposal requires formal DAO approval to reshape Aave Labs' decentralized governance structure while maintaining operations across

Ethereum
,
Avalanche
, and Arbitrum.

Aave Labs plans to share off-protocol revenue with

AAVE
token holders via a new governance proposal
according to reports
. The initiative addresses branding control disputes and introduces governance safeguards against unilateral decisions
as detailed
. Aave maintains its position as a leading decentralized lending protocol across multiple blockchain networks
according to market analysis
. Regulatory uncertainty and technical vulnerabilities remain key investor concerns despite recent growth
according to industry reports
.

Aave (AAVE) is advancing a governance proposal to distribute non-protocol revenue to token holders. This move follows tensions between Aave Labs and its decentralized autonomous organization regarding control and profit sharing

as reported
. The token climbed 10% after the announcement, reflecting market optimism about improved incentive alignment
according to market data
. Aave continues operating across
Ethereum
,
Avalanche
, and
Arbitrum
with robust technical infrastructure
as stated
. Still, sector-wide volatility requires careful risk assessment by participants.

What Is Aave Labs' Revenue-Sharing Proposal?

Aave Labs will submit plans to share income from non-core products with token holders. This includes revenue from front-end applications, swap integrations, and future off-protocol offerings

according to the proposal
. Founder Stani Kulechov confirmed the initiative seeks better alignment between the company and the DAO
as confirmed
. The proposal further addresses branding ownership and commercial usage rules for digital assets
according to reports
.

DAO members previously demanded decentralized control over brand assets like websites and social accounts

as documented
. Governance safeguards will prevent abrupt decisions affecting stakeholders according to the framework
as outlined
. A formal vote will determine whether this revenue-sharing model moves forward
according to the proposal
. The structure could reshape Aave Labs' relationship with its decentralized governing body
as suggested
.