Multicoin backs Aave Labs’ “Aave Will Win” proposal but urges funding and revenue-definition reforms
Multicoin Capital’s investment lead Vishal Kankani publicly expressed directional support for Aave Labs’ “Aave Will Win” proposal, which would transfer 100% of Aave-branded product revenues to the DAO in exchange for operational funding. Multicoin called this a meaningful strategic shift that could strengthen a token-centric economic model and set a DeFi precedent if executed properly. However, Multicoin proposed several modifications: provide detailed financials and underwriting for the requested financing (about $25M in stablecoins plus 75,000 AAVE, valued at roughly $40–50M, representing 25–30% of the DAO treasury); disburse funds tied to launch milestones and measurable revenue targets; define “100% revenue” with a clear deduction framework, transparent product-level reporting, and independently verifiable P&Ls to avoid conflicts of interest; make variable grants contingent on realized economic value rather than mere product launches, suggesting an incremental net-revenue share model; and clarify whether Aave Labs will pursue non-Aave-branded products and independent revenue streams to prevent strategic drift. The statement aims to improve governance clarity and protect DAO economic substance while still supporting the core revenue-transfer idea.
Neutral
The news is neutral overall. Multicoin’s directional support reduces uncertainty around community and investor sentiment for Aave Labs’ proposal, which is constructive for market confidence. However, the many suggested conditions — stricter funding disbursement, clearer revenue definitions, and verification requirements — introduce potential delays and complexity that could postpone benefits to the DAO and market. Short-term: the clarification process and demands for additional financial data may limit immediate positive price reactions for AAVE, since execution risk and timeline remain uncertain. Trading volatility may increase around governance votes, funding milestones, and disclosures. Long-term: if the proposal is adjusted per Multicoin’s recommendations and implemented transparently, it could strengthen Aave’s token-economics and governance credibility, which is bullish for AAVE fundamentals. Conversely, failure to reach clear agreements or prolonged disputes could weigh on sentiment. Similar past events (e.g., protocol revenue transfers or treasury restructurings) show initial volatility followed by stabilization if execution and reporting are robust. Traders should watch on-chain governance updates, milestone-linked fund releases, and product-level revenue disclosures to time positions and manage risk.