Aave Labs Proposes 100% Revenue Shift to DAO Amid Governance Showdown

Aave Labs is trying to work out a new deal between ecosystem builders and owners of Aave.

The main idea is that if you use the Aave (AAVE) brand to make money, that money should go to the DAO, not the company. That’s basically the core of a new governance framework it floated on Thursday, titled “Aave Will Win,” presented first as a non-binding temperature check. 

The pitch is pretty straightforward: Aave Labs would keep building Aave-branded products, but it would no longer keep the proceeds. Instead, it proposes sending 100% of revenue from Aave-branded lines into the DAO treasury. 

In practice, that would cover swap fees linked to Aave v3 and the planned v4 system, revenue tied to the aave.com front end, and any future Aave-branded businesses mentioned in the framework, including an Aave Card and a possible AAVE ETF. 

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The Ultimate Goal For Aave

Why now? Well, Aave’s next phase is less about proving DeFi lending works and more about defending the franchise as fintechs and institutions circle the space. 

Though Aave already dominates on-chain lending, its growth ceiling depends on building more products around the protocol. Think interfaces, payment rails, “institutional” versions, and other extensions that tend to produce fees outside pure borrowing and lending. 

The framework is designed to bring those fee streams under one roof: the DAO’s.

The proposal frames V4 as a more flexible base that makes it easier to spin up new markets and products without repeatedly modifying the core protocol. It also hints at segmented markets with different risk and revenue rules, basically, letting Aave run specialised lanes (including potential institutional setups) without forcing the entire protocol to live with the same constraints.

But the other problem it’s trying to solve is governance optics, or who actually controls the brand. 

Aave’s community has argued before about whether Aave Labs should hold the trademarks, domains, and social accounts that define “Aave” in the real world. The framework answers with a familiar workaround: create an Aave Foundation to hold trademarks and other IP, since a DAO can’t easily “own” those assets directly. Details, it says, would come in later votes.

The AAVE token rose about 2% after the proposal circulated, despite a broader market drop.

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