Aave Labs Proposes Revenue Restructuring and Requests a $50 Million Funding Package

Aave Labs Proposes $50 Million Funding Package to Reroute Product Revenue to DAO Treasury

February 14 2026 – Cointelegraph

Aave Labs has put forward a comprehensive governance proposal that would allocate roughly $50 million to the Aave DAO in exchange for directing all income generated by Aave‑branded products to the protocol’s treasury. The plan, posted on the Aave governance forum, combines a two‑tier stable‑coin grant, a token allocation, and a suite of structural changes that could reshape how the ecosystem captures and distributes value.

What the proposal entails

If the community accepts the proposal, Aave Labs would channel 100 % of product‑level revenue—including fees from the core website, the upcoming Aave App and Card, the Aave Pro suite, Aave Kit, and the experimental Aave Horizon project—directly to the DAO. The initiative also seeks formal ratification of the upcoming Aave V4 upgrade as the protocol’s long‑term technical foundation and the creation of a dedicated foundation to manage the Aave brand.

Governance reactions

The size of the funding request has sparked debate among token holders and community leaders. Marc Zeller, founder of the Aave Chan Initiative, warned that the $50 million sum represents a considerable portion of the DAO’s assets. He urged the community to split the proposal into distinct votes covering (i) revenue alignment, (ii) V4 approval, (iii) foundation formation, and (iv) the funding itself. Zeller also called for clearer definitions of “revenue” and an independent audit mechanism to verify the flow of product income to the treasury. In addition, he flagged the 75,000 AAVE token award as a potential source of voting power concentration, recommending that recipients disclose any wallets holding the grant.

DefiIgnas, a well‑known DeFi commentator, described the package as a “big compromise” that could be attractive to AAVE holders, yet underscored the need for transparent disclosure around the voting rights attached to the token grant.

Aave’s founder, Stani Kulechov, framed the move as a step toward a “token‑centric” model that aligns commercial upside with the DAO’s stakeholders. He argued that channeling product revenue into the treasury would expand the DAO’s capacity to fund growth initiatives, increase token buy‑backs, and pursue opportunistic investments.

Context and precedent

The current proposal follows a recent, high‑profile governance vote that failed on December 26, when AAVE token holders rejected a plan to transfer the protocol’s brand assets to a DAO‑controlled entity. In early January, Kulechov outlined a broader strategic shift aimed at diversifying beyond pure DeFi lending and reconsidering how non‑protocol income should benefit token holders. The $50 million request consolidates those ideas—revenue centralisation, V4 endorsement, and a brand‑governance foundation—into a single “Temp Check” signal vote. Should the signal indicate sufficient community support, the measure will advance through additional stages before any funds are released.

Analyst perspective

1. Revenue centralisation could boost DAO flexibility – By aggregating all product fees, the DAO would have a larger, more predictable cash flow to fund ecosystem grants, incentives, or token buy‑backs.

2. Risk of concentration of voting power – The AAVE token grant, while modest in dollar terms, translates into voting weight that could influence future proposals. Transparency around token holdings will be crucial to maintain community trust.

3. Milestone‑based funding aligns incentives – Linking $17.5 million of the stable‑coin grant to product launches incentivises Aave Labs to deliver on its roadmap, reducing the risk of idle capital.

4. Foundation creation adds a layer of governance – A dedicated brand foundation could professionalise brand stewardship, but it also adds another entity whose accountability must be clearly defined.

5. Potential impact on market perception – A successful vote may reassure investors that the protocol is moving toward a more sustainable, DAO‑funded operating model, potentially supporting AAVE’s price stability. Conversely, prolonged debate could signal governance friction, which might weigh on sentiment.

Key takeaways

• Funding request: Roughly $50 million, split between stable‑coin grants and an AAVE token allocation.
• Revenue shift: 100 % of fees from all Aave‑branded products would flow to the DAO treasury.
• Governance concerns: Calls for vote fragmentation, clearer revenue definitions, audit mechanisms, and disclosure of token grant holdings.
• Strategic goals: Consolidate value capture, ratify Aave V4, and establish a brand‑management foundation.
• Next steps: The “Temp Check” signal vote is ongoing. If it passes, the proposal will undergo further on‑chain voting before any funds are disbursed.

The outcome of this proposal will likely set a precedent for how major DeFi protocols manage non‑protocol revenue and allocate capital, making the upcoming voting periods a focal point for the Aave community and the broader crypto market.

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