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.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.

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

2026/01/04 10:48
News Brief
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.

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.

Market Opportunity
AaveToken Logo
AaveToken Price(AAVE)
$173.96
$173.96$173.96
+2.77%
USD
AaveToken (AAVE) Live Price Chart
Disclaimer: The articles published on this page are written by independent contributors and do not necessarily reflect the official views of MEXC. All content is intended for informational and educational purposes only and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC. Cryptocurrency markets are highly volatile — please conduct your own research and consult a licensed financial advisor before making any investment decisions.

You May Also Like

Cryptos Signal Divergence Ahead of Fed Rate Decision

Cryptos Signal Divergence Ahead of Fed Rate Decision

The post Cryptos Signal Divergence Ahead of Fed Rate Decision appeared on BitcoinEthereumNews.com. Crypto assets send conflicting signals ahead of the Federal Reserve’s September rate decision. On-chain data reveals a clear decrease in Bitcoin and Ethereum flowing into centralized exchanges, but a sharp increase in altcoin inflows. The findings come from a Tuesday report by CryptoQuant, an on-chain data platform. The firm’s data shows a stark divergence in coin volume, which has been observed in movements onto centralized exchanges over the past few weeks. Bitcoin and Ethereum Inflows Drop to Multi-Month Lows Sponsored Sponsored Bitcoin has seen a dramatic drop in exchange inflows, with the 7-day moving average plummeting to 25,000 BTC, its lowest level in over a year. The average deposit per transaction has fallen to 0.57 BTC as of September. This suggests that smaller retail investors, rather than large-scale whales, are responsible for the recent cash-outs. Ethereum is showing a similar trend, with its daily exchange inflows decreasing to a two-month low. CryptoQuant reported that the 7-day moving average for ETH deposits on exchanges is around 783,000 ETH, the lowest in two months. Other Altcoins See Renewed Selling Pressure In contrast, other altcoin deposit activity on exchanges has surged. The number of altcoin deposit transactions on centralized exchanges was quite steady in May and June of this year, maintaining a 7-day moving average of about 20,000 to 30,000. Recently, however, that figure has jumped to 55,000 transactions. Altcoins: Exchange Inflow Transaction Count. Source: CryptoQuant CryptoQuant projects that altcoins, given their increased inflow activity, could face relatively higher selling pressure compared to BTC and ETH. Meanwhile, the balance of stablecoins on exchanges—a key indicator of potential buying pressure—has increased significantly. The report notes that the exchange USDT balance, around $273 million in April, grew to $379 million by August 31, marking a new yearly high. CryptoQuant interprets this surge as a reflection of…
Share
BitcoinEthereumNews2025/09/18 01:01
Crypto Market Watch: Nexchain Presale Expands as BTC Stays at $116K, AVAX $30

Crypto Market Watch: Nexchain Presale Expands as BTC Stays at $116K, AVAX $30

Nexchain has continued to grow as one of the top crypto presales in 2025. In Stage 27, the project has raised more than $10.3 million. Tokens are priced at $0.108 with a confirmed listing at $0.30, leaving early buyers with an expected return of 278%. The launch of Whitepaper v2.0 set out updates to the [...] The post Crypto Market Watch: Nexchain Presale Expands as BTC Stays at $116K, AVAX $30 appeared first on Blockonomi.
Share
Blockonomi2025/09/18 01:15
Bitcoin devs cheer block reconstruction stats, ignore security budget concerns

Bitcoin devs cheer block reconstruction stats, ignore security budget concerns

The post Bitcoin devs cheer block reconstruction stats, ignore security budget concerns appeared on BitcoinEthereumNews.com. This morning, Bitcoin Core developers celebrated improved block reconstruction statistics for node operators while conveniently ignoring the reason for these statistics — the downward trend in fees for Bitcoin’s security budget. Reacting with heart emojis and thumbs up to a green chart showing over 80% “successful compact block reconstructions without any requested transactions,” they conveniently omitted red trend lines of the fees that Bitcoin users pay for mining security which powered those green statistics. Block reconstructions occur when a node requests additional information about transactions within a compact block. Although compact blocks allow nodes to quickly relay valid bundles of transactions across the internet, the more frequently that nodes can reconstruct without extra, cumbersome transaction requests from their peers is a positive trend. Because so many nodes switched over in August to relay transactions bidding 0.1 sat/vB across their mempools, nodes now have to request less transaction data to reconstruct blocks containing sub-1 sat/vB transactions. After nodes switched over in August to accept and relay pending transactions bidding less than 1 sat/vB, disparate mempools became harmonized as most nodes had a better view of which transactions would likely join upcoming blocks. As a result, block reconstruction times improved, as nodes needed less information about these sub-1 sat/vB transactions. In July, several miners admitted that user demand for Bitcoin blockspace had persisted at such a low that they were willing to accept transaction fees of just 0.1 satoshi per virtual byte — 90% lower than their prior 1 sat/vB minimum. With so many blocks partially empty, they succumbed to the temptation to accept at least something — even 1 billionth of one bitcoin (BTC) — rather than $0 to fill up some of the excess blockspace. Read more: Bitcoin’s transaction fees have fallen to a multi-year low Green stats for block reconstruction after transaction fees crash After…
Share
BitcoinEthereumNews2025/09/18 04:07