Aave Labs has put forth a monumental proposal to its token holders, seeking approximately $50 million in funding. This strategic request aims to fundamentally reshape Aave's ecosystem by committing to channel all brand-related product revenues directly into the Aave DAO treasury, marking a pivotal shift towards a more unified and token-centric value capture model for the decentralized finance protocol.
A Strategic Funding Proposal and Ecosystem Realignment
At the heart of the proposal lies a multi-faceted funding package, totaling around $50 million. This includes up to $42.5 million in stablecoins, comprising a $25 million main grant and $17.5 million tied to specific product milestones, along with 75,000 AAVE tokens, valued at approximately $8 million. In return for this substantial investment, Aave Labs pledges to redirect 100% of all product-level income—encompassing revenues from platforms like aave.com, the Aave App, the upcoming Aave Card, Aave Pro, Aave Kit, and Aave Horizon—to the DAO's treasury. Beyond funding, the proposal also seeks to ratify Aave V4 as the long-term technical foundation for the protocol and outlines plans for establishing a new foundation to own and manage the Aave brand, signifying a comprehensive move to consolidate value and operations under the DAO's oversight.
Community Scrutiny and Governance Dynamics
While framed as a step towards greater alignment, the proposal has not been without scrutiny from the Aave community. Prominent figures like Marc Zeller of the Aave Chan Initiative have voiced concerns regarding the sheer size of the $50 million package, which represents a significant portion of the DAO's treasury. Zeller advocates for breaking down the complex proposal into separate votes covering revenue alignment, V4 ratification, foundation creation, and funding, to allow for more granular consideration. Additionally, he has called for clearer definitions of "revenue," independent verification of product income, and transparency around the voting power associated with the 75,000 AAVE tokens granted, urging recipients to disclose their wallet holdings. These concerns highlight ongoing governance tensions and the community's desire for robust decision-making processes, even as Aave founder Stani Kulechov asserts that consolidating product revenues within the DAO will empower it to finance growth and pursue new opportunities.
