Aave Labs Proposes $50M Grant to Align Revenue with DAO

Aave Labs is seeking a $50 million funding package in exchange for redirecting all product revenue to the Aave DAO treasury.

By Julia Sakovich Published: Updated:

Aave Labs has submitted a governance proposal requesting a funding package of roughly $50 million in stablecoins and AAVE tokens in exchange for routing all revenue from Aave-branded products to the Aave DAO treasury. The plan includes up to $42.5 million in stablecoin grants tied to milestones and 75,000 AAVE tokens, with payments streamed over time if approved by tokenholders.

In return, Aave Labs would direct 100% of revenue generated from products such as aave.com, the planned Aave App, Aave Card, Aave Pro, and other ecosystem tools to the DAO. The proposal also seeks formal ratification of Aave V4 as the protocol’s long-term technical foundation and outlines the creation of a foundation to steward the Aave brand under a more DAO-centric structure.

Community reaction has been mixed, with some governance participants raising concerns about treasury allocation and the potential concentration of voting power tied to the token grant. Critics have called for clearer revenue definitions and separate votes on key elements, while supporters view the framework as a structural shift toward aligning value accrual and long-term protocol growth under DAO governance.

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