Aave Proposes Redirecting 100% Product Revenue To DAO To Align Governance

• Aave Labs has proposed a governance plan called the 'Aave Will Win Framework,' which redirects 100% of revenue from Aave-branded products to the Aave DAO.
• The move aims to resolve governance conflicts and align incentives between the community and the development team.
• Aave Labs is requesting $25 million in stablecoins, 75,000 AAVE tokens, and a mandate to build Aave V4 in exchange for redirecting the revenue.

Aave Labs has proposed a structural change to the Aave ecosystem by redirecting all revenue from Aave-branded products to the Aave DAO treasury. This move is a response to long-standing governance tensions and is part of an effort to align incentives between the community and the development team.

The proposal, called the 'Aave Will Win Framework,' aims to formalize Aave Labs' role as a contributor under a token-centric model. By sending all product-generated revenue to the DAO, the framework is designed to ensure that protocol growth benefits AAVE token holders directly.

The move has sparked debate among stakeholders. Supporters argue it will boost the DAO's financial capacity and strengthen long-term sustainability, while critics question the size of the funding request and the potential for centralized control.

What Is the Aave Will Win Framework?

The Aave Will Win Framework is a governance proposal that aims to redirect 100% of revenue from Aave-branded products—including user interfaces, institutional tools, and enterprise integrations—to the Aave DAO treasury. This includes income from aave.com, Aave Card, and other branded offerings. The goal is to formalize Aave Labs' role as a long-term contributor while ensuring that the DAO manages funds under token holder governance.

The framework includes a funding request of $25 million in stablecoins and 75,000 AAVE tokens to support development and operations. Aave Labs also seeks a mandate to build Aave V4, which will be the technical core of the protocol's future development.

What Are the Risks and Limitations?

Critics of the proposal highlight concerns over the legitimacy and transparency of the funding request. Some argue that the DAO should maintain control over revenue definitions and deductions, and that the requested amount represents a significant portion of the current DAO treasury.

Additionally, there are concerns that DAO governance could slow down execution compared to a centralized team. Some critics question whether the move is a genuine step toward decentralization or an attempt to secure a large payout under the guise of aligning incentives.

The proposal also includes the creation of an Aave Foundation to manage intellectual property and brand assets, aiming to formalize Aave Labs' role as a long-term contributor. However, the success of the framework will depend on the timely adoption of Aave V4 and effective management of redirected funds.