Aave Labs proposal to transfer 100% of protocol revenue to the DAO in exchange for operational funds

2026-02-19 01:14:20

ChainCatcher reports that, according to The Block, Aave Labs has proposed a framework to transfer 100% of revenue from all its Aave brand products to the Aave DAO treasury, and to transfer related trademarks and intellectual property to the newly established Aave Foundation, while also requesting the DAO to provide funding for its operations.

Under the proposal, Aave Labs will relinquish all future income from Aave v3, v4 protocols, aave.com frontend revenue, Aave Card, and AAVE ETF. In exchange, it requests the DAO to commit to providing $25 million in stablecoins and 75,000 AAVE tokens to cover operational expenses, along with three grants of $3 million each for the development and marketing of Aave App, Aave Pro, and Aave Card, and $2.5 million for Aave Kit.

Aave Labs states that the v4 architecture will enable revenue models previously difficult to achieve, and plans to gradually adjust v3 parameters after launching v4 over 8-12 months to facilitate migration. The proposal also requests the DAO to coordinate with Labs on v4 development and to temporarily suspend new feature development for v3.

Marc Zeller, founder of the Aave Chain Initiative, expressed opposition. Zeller described this as a “pseudo-goodwill cash-out attempt,” claiming that Labs is trying to use the aggressive proposal as leverage in negotiations, “regardless of governance processes, attempting to impose outcomes.” He estimates Labs’ actual funding demand at around $50 million and questions the legitimacy of its governance.

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