Aave Labs seeks $50M package in Revenue Shift proposal
Aave Labs has asked token holders to approve a funding package of around $50 million to transfer all revenue from Ave-branded products to the Aave DAO treasury.
The proposal includes up to $42.5 million in stable coin — $25 million as a principal grant and $17.5 million tied to production milestones. It also includes 75,000 Aave (AAVE) tokens, worth about $8 million at the time of writing. Stablecoin grants, if approved, will be released over time, and milestone payments will be released at product launch.
In return, Aave Labs will transfer 100% of production-level revenue to The DAO. That includes payments generated through aave.com, the proposed Aave app and Aave Card, Aave Pro, Aave Kit and Aave Horizon. The framework requires token holders to approve Aave V4 as the protocol's long-term technical foundation and outlines plans to create a foundation to hold and maintain the Aave brand.
The idea marks a shift in how Ave captures and distributes value. After months of management wrangling, Aave Labs transitions to a DAO-funded operating model that consolidates protocol and product revenue at the DAO level.
Administrative issues on voting power
The funding request drew scrutiny from some members of the community. Marc Zeller, founder of the Ave Chan Initiative, wrote that the $50 million package represents a significant portion of the DAO's treasury.
They requested that the proposals related to revenue alignment, V4 approval, foundation creation and financial support be divided into separate proposals.
Zeller called for independent verification of the definition of “revenue” and product revenue flowing into the DAO. He raised concerns about the 75,000 Aave token grant, management tokens carry voting power. He said parties receiving DAO tokens must declare their wallets.
Crypto analyst DeFiiñas described the proposal as a “great deal” that AAVE holders should be looking for, although he said it would be appropriate to make clear statements regarding the governing voting power associated with the 75,000 AAVE offering.
Ave Labs has designed its proposal to move to a “token-centric” model that aligns with the DAO. Aave founder Stany Kulekov says that directing product revenue on X to The DAO will expand its ability to fund growth and other initiatives.
“This will allow The DAO to fund development, increase acquisitions, and pursue other opportunities as needed,” Kulekov wrote.
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A proposal rejection is followed by an IP vote
The proposal follows another controversial administration recently. On December 26, Aave tokenholders voted against a majority vote against a proposal to transfer control of the protocol's brand assets to an entity under the DAO.
On January 3rd, Kulekov outlined a broader strategy for decentralized finance (DeFi) lending and how off-protocol revenue would flow to token holders.
The current proposal formalizes elements of that vision, including revenue consolidation, V4 adoption and a new infrastructure in one strategic model.
The Temp Check, the first token vote to measure community support, was launched before any mandatory onchain vote. If approved, the proposal will go through additional administrative steps before any funds are distributed.
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