Aave Labs Proposes Non‑Protocol Revenue Sharing to Ease Governance Tensions

Aave Labs has moved to ease ongoing governance tensions by introducing a proposal centered on non‑protocol revenue sharing, aiming to better align incentives without altering Aave’s core protocol economics.

What’s Being Proposed

Under the initiative, Aave Labs would share revenue generated outside the core Aave protocol—such as income from:

• Licensing and branding arrangements
• Infrastructure and service offerings
• Other Labs‑led commercial activities

Importantly, the proposal does not involve diverting protocol fees or changing how on‑chain revenues are distributed, addressing a key concern among tokenholders wary of protocol‑level value leakage.

Why It Matters

Governance debates within the Aave ecosystem have increasingly focused on:

• The relationship between Aave Labs and the decentralized protocol
• Whether value created by Labs should accrue more directly to the community
• How to reward contributors without compromising decentralization

By ring‑fencing protocol revenues and sharing only non‑protocol income, Aave Labs is signaling a compromise between community alignment and operational flexibility.

Market and Governance Implications

• Reduced governance friction: The approach may defuse calls for more aggressive fee sharing or protocol changes
• Clearer value attribution: Separating Labs revenue from protocol fees improves transparency
• Precedent setting: Other DeFi projects may adopt similar structures to manage DAO–core team dynamics

What to Watch Next

Tokenholders will be closely watching:

• The specific revenue categories included in sharing
• Distribution mechanisms and timelines
• Whether the model evolves toward deeper value accrual for AAVE holders

For now, the move marks a notable step in Aave’s ongoing effort to balance decentralized governance expectations with the realities of building and commercializing DeFi infrastructure.