Aave Labs requests $50M in exchange for shifting revenue to DAO

Aave Labs has submitted a proposal asking AAVE holders to approve roughly $50 million in funding in exchange for transferring all revenue generated by Aave-branded products into the Aave DAO treasury. The request includes up to $42.5 million in stablecoins – a $25 million base grant and $17.5 million tied to product milestones – plus 75,000 AAVE worth about $8 million. If approved, the stablecoins would stream to Aave Labs, and the milestone-based portion would unlock as new products go live.

In return, Aave Labs commits to directing 100% of revenue from all user-facing services – including aave.com, the planned Aave App and Aave Card, and products such as Aave Pro, Aave Kit, and Aave Horizon – to the DAO. The package also seeks to ratify Aave V4 as the protocol’s long-term technical foundation and create a dedicated structure to manage the Aave brand. In effect, the proposal formalizes a shift to a model where all value flows consolidate at the DAO level, with Aave Labs operating as a community-funded development group.

The request has sparked intense debate within the ecosystem. Marc Zeller, founder of Aave Chan Initiative, called the package “too large” for a single vote because it simultaneously addresses funding, brand governance, and ratification of Aave V4. He urged splitting the proposal into multiple votes and demanded clear definitions of what qualifies as “revenue,” along with independent verification of all income streams being redirected to the treasury. The grant of AAVE raised further concern: Zeller noted that DAO tokens confer voting power, and any organization receiving them must disclose its on-chain holdings.

Among supporters is analyst DefiIgnas, who described the proposal as “a major compromise” that AAVE holders should view positively. Even so, he also stressed the need for more transparency around the voting power associated with the 75,000 AAVE allocation.

Aave founder Stani Kulechov said transferring product revenue directly to the DAO treasury would expand the community’s capabilities – enabling it to fund growth, increase buybacks, and support new initiatives. He framed the plan as a move toward a “token-centric” model in which value is captured and distributed at the DAO level.

The proposal follows a failed vote in which AAVE holders rejected a previous attempt to move brand assets under a DAO-controlled structure. Community members acknowledge that the current package represents a strategic reset: combining revenue consolidation, the transition to V4, and a new brand-governance architecture in a single initiative.

The proposal is currently in the Temp Check stage – an initial signaling vote. If it shows sufficient support, the plan will advance to the next steps, including an on-chain vote and final approval of the funding and revenue-distribution mechanics.