Aave Labs Proposes Sending 100% of Product Revenue to DAO in Major Governance Shift

• Aave Labs plans to route 100% of product revenue to the DAO.
• The move links Aave’s future growth to the V4 upgrade and institutional expansion.

Aave Labs has introduced the new governance proposal called “Aave Will Win,” which would send 100% of revenue generated through Aave-branded products directly to the community treasury, which is controlled by the Aave DAO. If approved, then any income generated by the Aave Labs through Aave products will no longer stay in the company and will flow to the DAO, where the token holders will decide how the funds can be used. 

What does this new governance proposal bring?

Currently, Aave primarily earns from borrowing and lending on the protocol; however, under the new proposal, the product’s profits would benefit token holders. Stani Kulechov, founder of Aave, says this structure makes Aave more competitive as financial institutions enter DeFi increasingly. This move strengthens DAO control and ties growth directly to the token holders, which also reduces concerns about centralization.

This proposal comes after the huge internal debate in the community during late 2025 on who should control the branding rights, websites, trademarks, and social media. Some of the members felt that too much power remained with the Aave Labs. The new plan attempts to resolve this issue by hard-coding the revenue alignment. 

Aave V4 role 

Aave V4 is one of the upcoming major software updates, which is designed to launch new financial markets and support institutional products, which allows specialized risk models. This makes Aave more flexible while keeping security strong. This proposal allows Aave to create different polls and different risk levels with different revenue setups, which enables the independent market without impacting retail users. 

Basically, DAOs cannot legally own intellectual property, so the plan suggests forming a separate foundation to hold trademarks and to manage legal responsibilities. After this announcement of the new proposal, the Aave token price rose slightly, even during the weaker market. If the community approves, more votes will define the V4 activation and funding structures.

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