Aave’s “Aave Will Win” Proposal Clears Temp‑Check, Moves to ARFC Stage
The governance framework that would direct all product revenue to the AAVE token and DAO treasury has secured a narrow majority in its initial community poll, setting the stage for a more detailed review before any on‑chain vote.
TL;DR
- The off‑chain “Temp Check” vote on Snapshot concluded with 52.58 % in favour, 42 % opposed and roughly 5 % abstentions.
- The outcome pushes the “Aave Will Win” framework into the Aave Request for Final Comment (ARFC) phase, where technical and fiscal details will be refined.
- If the proposal ultimately passes an on‑chain Aave Improvement Proposal (AIP) vote, it would shift Aave’s revenue model to a fully token‑centric structure, channeling 100 % of product income to the AAVE treasury.
Background
Aave’s governance process is divided into several sequential checkpoints. The first, known as the Temp Check, is an off‑chain poll conducted on Snapshot that measures community sentiment before a formally binding vote is considered. The “Aave Will Win” framework, first outlined in a multi‑stage governance report, proposes that all revenue generated by Aave’s suite of products be funneled into the AAVE token and the DAO’s treasury, thereby aligning the incentives of token holders with the protocol’s builders.
Founder and chief steward Stani Kulechov confirmed the vote result on social media, framing the approval as a step toward a fully token‑centric ecosystem. The proposal now proceeds to the ARFC stage, during which the community can submit comments, suggest amendments, and help shape the final wording that will later be subject to an on‑chain AIP vote.
Governance Debate
Although the proposal cleared the Temp Check, the vote revealed a split within the Aave community. The margin of victory was modest, and discussions on the forum and governance reports highlighted several points of contention:
- Funding Levels: Critics questioned whether allocating the entire revenue stream to the DAO might leave insufficient resources for Aave Labs’ ongoing R&D.
- Token Allocation Size: The exact proportion of revenue to be minted as new AAVE tokens remains a subject of debate, with concerns about potential inflation.
- Decentralisation of Authority: Some members argued that an overly centralized treasury could erode the protocol’s decentralized ethos.
Marc Zeller, founder of the Aave Chan Initiative, published a post‑mortem that removed votes associated with large Aave Labs‑linked addresses. His analysis suggested that, when filtered for the broader community, the proposal would have been rejected, underscoring the influence of a relatively small group of delegates.
What Comes Next
The ARFC phase will run for several weeks, inviting stakeholders to submit feedback on the proposal’s structure, capital‑deployment safeguards, and any needed fiscal guardrails. A revised draft will then be prepared for an on‑chain Aave Improvement Proposal (AIP) vote, the only mechanism that can bind the DAO to the stipulated changes.
If the final AIP receives the requisite support, Aave V4 could become the technical foundation for a token‑centric revenue model, potentially altering the way the protocol funds product development, incentivises contributors, and distributes value to token holders.
Key Takeaways
- Narrow Approval: The Temp Check passed with just over half of the votes, indicating a divided but engaged community.
- Revenue Realignment: The proposal seeks to route 100 % of product earnings to the AAVE treasury, aligning economic incentives with token holders.
- Governance Scrutiny: The upcoming ARFC stage will be critical for addressing concerns about fiscal responsibility and decentralisation.
- Potential Paradigm Shift: Should the framework survive the final AIP vote, Aave could set a precedent for token‑centric funding models across DeFi.
- Community Influence: Analyses that exclude large delegations suggest that broader sentiment may be less supportive, highlighting the importance of delegate voting power in DAO outcomes.
The article was prepared with the assistance of AI‑driven editing tools to ensure accuracy and clarity.
Source: https://thedefiant.io/news/defi/aave-s-aave-will-win-proposal-advances-with-community-backing
