Aave Labs Proposes New DAO Value Accrual and Growth Framework

Two months after the Aave DAO and Aave Labs clashed on the DeFi platform’s governance forum, Aave Labs has formally submitted a new strategic framework proposal to the DAO called “Aave Will Win.”

The proposal intends to align the DAO and Labs over the future growth of Aave v4, and to direct 100% of product-layer value directly to the DAO.

Specifically, the proposal requests that the DAO ratifies Aave v4 as the protocol’s core foundation for future development, establishes a funding and growth framework to compete at a global financial scale, and formalizes a model where 100% of revenue generated by Aave-branded products, including those built by Labs, flows to the DAO treasury.

If passed, the deal would clarify structure and align incentives between the DAO and Labs, potentially serving as a landmark decision on tokenholder rights, which were called into question in December by Ernesto Boado, the former chief technical officer (CTO) at Aave Labs.

“The framework formalizes Aave Labs’ role as a long-term contributor to the Aave DAO under a token-centric model, with 100% of product revenue directed to the DAO,” said Stani Kulechov, the founder of Aave Labs.

“As onchain finance enters a decisive new phase, with fintechs and institutions entering DeFi, this framework positions Aave to capture major growth markets and win over the next decade,” Kulechov concluded.

While rumors have been circulating that major changes were coming to Aave, some prominent delegates, such as Marc Zeller of the Aave-Chan Initiative (ACI), were quick to dismiss them, saying, “there’s nothing positive on the short term, but i guess good try.”

It is unclear whether Zeller was privy to this proposal and whether his statements pertain directly to it.

Aave remains DeFi’s leading lending protocol, accounting for more than 50% of the total lending market with more than $52 billion in cumulative net deposits. Despite the protocol’s long-standing success, its native token has struggled alongside the rest of the altcoin market and is down 56% over the last year.

While the proposal is far from finalized, tokenholder alignment and DAO value accrual could potentially be a tailwind for the AAVE token.