Aave Labs Proposes 100% Product Revenue to DAO, V4 Migration and New Foundation

Aave Labs submitted the “Aave Will Win” governance proposal to route 100% of revenue from Aave‑branded products (UIs, institutional tools and services) to the Aave DAO treasury. Instead of retaining product income, Aave Labs would request an annual budget from the DAO paid in stablecoins and AAVE to fund development and go‑to‑market efforts. The proposal also calls for creating a separate foundation to hold trademarks, domains and branding assets to resolve IP and brand‑control disputes. Central to the plan is rolling out Aave V4 as the protocol’s core architecture, with a proposed migration from V3 to V4 within eight to twelve months pending DAO approval and subsequent activation and funding votes. Proponents say the model aligns incentives between Aave Labs and token holders, increases governance transparency and simplifies launching new markets. Critics argue the move effectively functions as a large funding request (reported around $50M), risks concentrating influence, and could turn governance into theater if a single party sways votes with token holdings. Some community members ask for extended stress testing before major capital migrations. Traders should watch AAVE governance votes, budget requests, and migration timelines for potential on‑chain activity, token unlocking or treasury spending that may affect AAVE liquidity and price.