Aave Proposes 100% Revenue Model for DAO Treasury

Aave has introduced a new governance proposal that could reshape how its ecosystem earns and shares money. The plan, called the “Aave Will Win Framework,” focuses on sending all product revenue directly to the DAO treasury.

This is a big shift. Instead of keeping earnings, they want the DAO to receive 100% of revenue from all its branded products. In simple terms, the community treasury becomes the main beneficiary of everything built under the Aave name. The proposal is now under community review. If approved, it will move to voting and on-chain execution.

A New Model Focused on the DAO

At the core of the proposal is a clear idea. Every product linked to Aave should generate value for the DAO, not for a separate company. This includes platforms like the Aave app, Aave Pro, Aave Card and more. Even future products will follow the same rule. All revenue flows back to the DAO treasury.

Aave Labs also made another strong commitment. It will only build related products going forward. It will not create outside projects or keep separate income streams. This creates a tighter link between builders and the community. The DAO funds the work, and in return, it receives all the revenue.

Funding Plan and Incentives

While the DAO receives revenue, Aave Labs is asking for funding to operate. The proposal requests $25 million in stablecoins and 75,000 AAVE tokens. This funding will support one year of development and growth. The token allocation will unlock slowly over four years. This helps keep long-term alignment between the team and the DAO.

In addition, around $17.5 million is planned for product incentives. These funds will support growth across key products like Aave App and Aave Pro. The funding will not be handed out all at once. Instead, it will follow a structured plan with milestones. This ensures the team delivers results before receiving full support.

Strong Focus on Transparency

The proposal also introduces a strict accountability system. Aave Labs will share updates every three months. These reports will show how funds are used. They will also track key performance metrics like user growth and revenue.

Each product will have its own targets. For example, the Aave app will track user sign-ups and assets. Meanwhile, Aave Pro will focus on trading activity and adoption. This system helps the community stay informed. It also builds trust between the DAO and developers.

What This Means for its future?

This proposal comes at a time when Aave is already one of the largest DeFi platforms. Its current version generates over $100 million in yearly revenue for the DAO. Looking ahead, the upcoming Aave V4 upgrade could expand this even more. It introduces new ways to earn fees and grow the ecosystem.

If the proposal passes, this could become one of the most community-driven financial systems in crypto. Every product, every feature and every dollar would feed back into the DAO. But the final decision rests with the community. The next steps include voting through Snapshot and later on-chain approval. For now, the proposal signals one thing clearly. Aave is doubling down on a model where the community owns the value it helps create.

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