Aave Labs has requested tokenholders to approve a funding package deal value about $50 million in trade for redirecting all income from Aave-branded merchandise to the Aave DAO treasury.
The proposal contains as much as $42.5 million in stablecoins — $25 million as a major grant and $17.5 million tied to product milestones. It additionally contains 75,000 Aave (AAVE) tokens, value about $8 million on the time of writing. The stablecoin grants, if authorized, can be streamed over time, and milestone funds can be launched upon product launches.
In return, Aave Labs would route 100% of product-level income to the DAO. That features charges generated by aave.com, the deliberate Aave App and Aave Card, Aave Professional, Aave Package and Aave Horizon. The framework additionally asks tokenholders to ratify Aave V4 because the protocol’s long-term technical basis and descriptions plans to create a basis to carry and steward the Aave model.
The proposal would mark a shift in how Aave captures and distributes worth. It will consolidate protocol and product income on the DAO degree whereas shifting Aave Labs to a DAO-funded working mannequin after months of governance rigidity.
Governance considerations over voting energy
The funding request drew scrutiny from some neighborhood members. Marc Zeller, founding father of the Aave Chan Initiative, wrote that the $50 million package deal represents a good portion of the DAO treasury.
He referred to as for unbundling the vote into separate proposals overlaying income alignment, V4 ratification, basis creation and funding.
Zeller additionally referred to as for clearer definitions of “income” and impartial verification of product revenue flowing to the DAO. He raised considerations over the 75,000 Aave token grant, noting that governance tokens carry voting energy. He mentioned entities receiving DAO tokens ought to disclose their pockets holdings.
Crypto commentator DefiIgnas described the proposal as a “massive compromise” that AAVE holders “ought to like,” although he additionally mentioned clearer disclosures round governance voting energy tied to the 75,000 AAVE grant can be acceptable.
Aave Labs framed the proposal as a transfer towards a “token-centric” mannequin that aligns worth accrual with the DAO. Aave founder Stani Kulechov mentioned on X that directing product income to the DAO would broaden its capability to fund development and different initiatives.
“This is able to place the DAO to fund development, improve buybacks, and pursue different alternatives because it sees match,” Kulechov wrote.
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Proposal follows rejected IP vote
The proposal follows one other contentious governance episode not too long ago. On Dec. 26, Aave tokenholders rejected a proposal to switch management of the protocol’s model belongings to an entity below the DAO, with a majority voting towards the measure.
On Jan. 3, Kulechov outlined a broader technique to broaden past decentralized finance (DeFi) lending and revisit how non-protocol income flows to token holders.
The present proposal formalizes parts of that imaginative and prescient, combining income consolidation, V4 ratification and a brand new basis construction in a single strategic pitch.
The Temp Examine, an preliminary sign vote to measure neighborhood assist, was launched forward of any binding onchain vote. If it advances, the proposal would transfer by extra governance phases earlier than any funds are distributed.
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