Aave weighs routing 100% revenue to DAO amid V4 shift
Key Takeaways:
- Routes 100% of product revenue to the AAVE DAO treasury.
- Aave Will Win Framework centralizes protocol earnings within the AAVE DAO treasury.
- Directs all Aave product revenues entirely into the DAO-managed treasury.
As reported by CoinDesk, Aave Labs introduced the “Aave Will Win Framework,” a governance proposal that would route 100% of product revenue to the AAVE DAO treasury and shape the protocol’s next chapter. The plan positions treasury inflows as central to aligning the protocol, products, and token.
Protos noted the initiative follows an extended governance debate and that requested sums have drawn scrutiny from delegates. The proposal is framed as an alignment measure after a period of heightened tensions.
According to FXStreet, the package includes a funding request of $25 million in stablecoins and 75,000 AAVE for Aave Labs, alongside growth and development grants. The net effect on the treasury would depend on revenues redirected versus outflows approved through governance.
Stani.eth on X said Aave DAO earned $140 million in 2025, exceeding the combined total of the prior three years. That datapoint contextualizes the potential magnitude of future treasury inflows if all product revenues are redirected.
According to discussions on the Aave governance forum, stakeholders are seeking precision on whether “100% revenue” refers to gross or net, and what deductions might apply for incentives or rebates. The same dialogue asks which products, fees, or new services are covered and how exclusions, if any, would be justified and reported.
Aave Labs has positioned the framework as token-centric and tied to the transition from V3 to V4, describing V4 as critical to unlocking new monetization paths. Under that vision, the DAO would receive product-derived cash flows while development resourcing is separately approved via governance.
Several delegates have also raised process and accountability questions, including brand control, reporting cadence, and voting-power conflicts. “Labs is back with a $50M ‘solution’, presented as ‘for the good of the DAO’, after zero prior coordination with delegates or service providers,” said Marc Zeller, founder of the Aave Chan Initiative.
According to JesusCryptoPlaza, a community commenter, treasury growth alone does not guarantee value for AAVE holders without explicit capital-allocation mechanisms approved by governance. Any pathway, such as buybacks, fee redistribution, or targeted grants, would remain a policy choice and could evolve over time.
The Defiant reported the proposal aims to resolve an ongoing dispute and better align equity and tokenholder interests. Implementation details, definitions, carve-outs, auditability, and guardrails, are likely to determine whether alignment and accountability improve as intended.
Disclaimer: CoinLineup.com provides cryptocurrency and financial market information for educational and informational purposes only. The content on this site does not constitute financial, investment, or trading advice. Cryptocurrency and stock markets involve significant risk, and past performance is not indicative of future results. Always conduct your own research and consult a qualified financial advisor before making any investment decisions.
You May Also Like
Solid growth outlook supports Ringgit – Standard Chartered
CME Group to launch options on XRP and SOL futures
