New Aave Proposal Directs 100% Revenue to AAVE Token Holders

Aave Labs proposes sending all product revenue to the Aave DAO treasury under a new token-centric framework. Here is what it means.

Aave Labs has put forward a major governance proposal. It aims to redirect all product-layer revenue to the Aave DAO treasury. 

The framework, dubbed “Aave Will Win,” marks a significant structural shift for the protocol. 

Under it, every dollar generated by Aave-branded products flows directly to token holders. 

The proposal follows an extensive community feedback period and has now been formally published as an ARFC.

Aave Will Win Framework and the Token-Centric Model

The proposal centers on a single commitment: full revenue alignment with the DAO. 

Aave Labs says it will stop retaining any product revenue going forward. Instead, all earnings from Aave-branded products will go into the Aave DAO treasury.

Products covered include aave.com, Aave App, Aave Card, Aave Pro, Aave Kit, and Aave Horizon.

The swap integration on aave.com alone generates roughly $12 to $24 million annually. That stream would shift to the DAO immediately upon approval.

Aave Labs also confirmed it will work exclusively on Aave-related products. It will not pursue outside revenue or build unrelated products. 

The DAO funds operations, and the DAO receives what those operations produce.

Revenue reporting will be quarterly and independently verified. All product revenue and deductions will be published to the governance forum for full community oversight.

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Aave DAO Funding Request and Accountability Structure

Because Aave Labs is giving up self-funding, the DAO must now cover its operating costs. 

The team has requested $25 million in stablecoins alongside 75,000 AAVE tokens over 12 months.

The stablecoin grant is in three parts. Five million dollars is paid up front. Two concurrent streams then run monthly, ending at months six and twelve, respectively. 

Any unspent funds return to the DAO treasury at year-end.

The 75,000 AAVE allocation vests linearly over four years. Aave Labs clarified these tokens will not be for governance voting. They serve strictly as employee compensation to support talent retention.

Growth grants tied to specific product milestones are also included. 

Aave App carries a $7.5 million allocation. Aave Pro, Aave Card, and Aave Kit carry separate milestone-based grants totaling $10 million combined.

Aave V4 Revenue Expansion and Protocol Growth Plans

Beyond the product layer, Aave V4 plays a central role in the broader revenue strategy. 

The protocol already generates over $100 million annually for the DAO under V3. V4 is for pushing that figure significantly higher.

New Spoke modules within V4 open doors to additional revenue streams. These include permissioned markets, LP collateral, debt trading, and cross-chain functionality. 

Each Spoke carries its own risk parameters and revenue model.

A new reinvestment module is also part of V4. It allows idle liquidity sitting in Aave pools to earn yield in pre-approved, low-risk strategies. 

Historically, that float has represented a substantial untapped opportunity for the DAO.

Aave Labs is also absorbing functions previously handled by BGD Labs and ACI. 

Governance tooling, infrastructure maintenance, and security coordination are among the responsibilities made in-house. The proposal notes this expanded scope is larger than any prior single service provider engagement.

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