Aave DAO approves $42.5M funding proposal in tight vote

Aave DAO narrowly approved the “Aave Will Win” framework in a Temp Check vote, with 52.58% in favor, 42% against and 5.42% abstaining. The off-chain Snapshot vote closed Sunday, advancing the plan to the Aave Request for Final Comment (ARFC) stage for community review and possible revisions.

The framework asks tokenholders to authorize up to $42.5 million in stablecoins and 75,000 AAVE for Aave Labs. In exchange, 100% of revenue from Aave-branded products would be directed to the Aave DAO treasury under a DAO-funded operating model.

The close result highlighted disagreements over funding levels, revenue alignment and governance structure. Community members questioned the size of the funding package and the inclusion of 75,000 AAVE that carry voting rights, and some called for clearer definitions and stronger disclosure standards around governance holdings.

In a post on X, founder Stani Kulechov described the Temp Check as progress toward a “fully token-centric model,” adding that “structural improvements will be incorporated at the ARFC stage based on community feedback.”

Under Aave’s governance process, proposals move from Temp Check to ARFC before any binding on-chain vote. If advanced, tokenholders would consider an on-chain Aave Improvement Proposal to formalize the DAO-funded model and ratify Aave V4 as the long-term technical foundation. Only AIPs executed on-chain are binding.

Debate ahead of the vote included differing views on past funding and impact. On Feb. 25, Aave Chan Initiative founder Marc Zeller published a transparency report on Aave Labs’ historical funding, while Aave Labs released an account of its role in building the protocol since 2017.

The ARFC stage will determine whether concerns raised during Temp Check lead to adjustments before an on-chain vote is scheduled. If it proceeds, AAVE tokenholders would decide on the funding scope, the revenue arrangement and the roadmap tied to V4.