The long-standing governance tensions between Aave Labs and the Aave DAO have resurfaced, despite a previous ceasefire. A new framework proposed by Aave Labs, aiming to direct all product revenue to the DAO, has ignited fresh debate over funding, control, and the nature of their working relationship, signaling that the future direction of the Aave ecosystem remains contentious.
Aave Labs' "Aave Will Win" Framework
Aave Labs has put forth an "Aave will win" framework, committing to channel 100% of product revenue from all Aave-branded products, including Aave.com, the mobile app, Aave Card, and Aave Horizon, directly to the Aave DAO. According to Aave Labs CEO Stani Kulechov, this initiative formalizes Aave Labs' role as a dedicated, long-term contributor within a token-centric model. In conjunction with this revenue commitment, Aave Labs has requested $50 million, including 75,000 AAVE tokens, from the DAO to fund the development of these very products. They argue that this funding is necessary as the revenue streams they previously relied on will now benefit the DAO. Additionally, Aave Labs has proposed the creation of a Foundation to legally manage and protect Aave brands, recognizing the DAO's limitations as a non-legal entity.
DAO's Criticism and Unresolved Tensions
This proposal has, however, been met with significant resistance from the Aave DAO, which represents tokenholders and governs ecosystem developments. Recalling a contentious period in late 2025 involving accusations of Aave Labs misusing DAO revenues and disputes over brand control, the current proposal is seen by some as a continuation of past issues. Vocal DAO member Marc Zeller sharply criticized the $50 million funding request as an "extraction," citing a lack of prior coordination with delegates and service providers. Zeller emphasized that while the 100% revenue commitment is a win for the DAO, the subsequent demands suggest "the fox controls the henhouse," raising concerns about incentive alignment. The DAO is now demanding further clarification and an audit of Aave Labs' income streams to verify the proposed 100% revenue commitment, indicating that the governance crisis is far from over despite Aave Labs' significant concession on revenue sharing.
