Aave Labs proposes redirecting 100% of product revenue to Aave DAO while seeking $25M and 75,000 AAVE
Aave Labs has submitted a non-binding "Aave Will Win" temperature-check proposal asking whether all product-related revenue should flow to the Aave DAO. The plan would redirect 100% of income from Aave-branded products — including swap fees from Aave v3/v4, aave.com earnings, and future offerings such as an Aave Card or ETF-linked products — into the DAO treasury. In parallel, Labs proposes creating a community-backed foundation to hold Aave trademarks and intellectual property. To cover ongoing operations after relinquishing product revenues, Aave Labs requests upfront funding from the DAO: $25 million in stablecoins, 75,000 AAVE tokens, and additional product-specific grants. Founder Stani Kulechov frames the move as establishing a "token-first" relationship between the primary developer and the DAO and to reduce "value leakage." Community response is mixed: supporters welcome revenue flow to the DAO and clearer incentives, while critics question whether the one-time payments and retained control elements effectively offset the transfer and worry about long-term governance implications. The proposal follows prior controversy when Labs routed interface swap fees away from the DAO, which sparked governance tensions. The temperature check is non-binding and must secure significant community support before moving to formal governance. Traders should monitor governance votes, AAVE treasury changes, any DAO-funded token distributions or sales, and announcements about the proposed foundation or product monetization, as these could affect AAVE supply dynamics and market sentiment.
Neutral
The proposal is structurally significant but non-binding and mixed in its immediate market effects. Positives: redirecting 100% of Aave-branded product revenue to the DAO reduces value leakage to a for-profit developer, which could strengthen long-term token-holder economics and governance legitimacy — a bullish structural signal. Negatives: Aave Labs requests $25M and 75,000 AAVE upfront, creating potential near-term selling or dilution if tokens are sold or vested, and critics see retained control risks that may limit real change. Short-term impact is likely muted or mixed: market reaction will depend on vote progress, timing and structure of funding disbursements, and any token sales tied to the funding. Long-term impact could be moderately positive if revenue genuinely flows to the DAO and is managed transparently; conversely, if funding terms preserve outsized Labs control or trigger token supply pressure, the effect could be negative. Given these offsetting factors and the proposal’s tentative status, the overall expected price impact on AAVE is neutral.