Aave Labs Proposes Off-Protocol Revenue Sharing With Token Holders - Unchained

2026-01-05 12:18:29

Abstract generation in progress

Aave Labs has proposed sharing non‑protocol revenue with AAVE token holders as a concession after the recent governance blow‑up over fees, branding, and IP control.

In a governance forum post, founder Stani Kulechov said that Aave Labs will put forward a formal proposal to distribute revenue generated outside the core lending protocol to AAVE holders.

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The upcoming proposal is expected to define structures, DAO oversight, and risk safeguards, although concrete mechanics and timelines are yet to be finalized.

Tensions between Labs and the Aave community flared when community members noticed interface and swap fees going to Labs rather than the DAO treasury.

“If this marks the beginning of a more open and constructive posture, it is welcome,” noted Marc Zeller, long‑time Aave ecosystem figure and founder of major DAO delegate Aave‑Chan Initiative (ACI).

Zeller, who had been vocally critical of Labs’ handling of a governance vote to transfer control of brand assets, noted that roughly $500 million in AAVE market capitalization had been erased after the dispute went public.

“A clearer willingness to discuss substance is the right direction,” said Zeller.

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