Aave weighs $50M plan to route 100% product revenue to DAO

Aave Will Win framework: $50 million funding proposal explained

Aave Labs has put forward the “Aave Will Win” framework, a roughly $50 million funding package that pairs new financing with a pledge to redirect 100% of product-level revenue to the Aave DAO treasury, as reported by Cointelegraph (https://cointelegraph.com/news/aave-labs-50m-dao-revenue-proposal?utm_source=openai). The request comprises about $25 million in stablecoins upfront, around $17.5 million linked to product-based milestones, and a grant of 75,000 AAVE tokens; it also contemplates a new foundation to steward Aave trademarks and intellectual property.

The scope makes it consequential for Aave’s political economy. It blends revenue realignment with funding, token issuance, and brand/IP arrangements in one motion, which is why it has become the focal point of a contentious governance debate between Aave Labs, delegates, and community stakeholders.

Why 100% product revenue to the DAO matters now

Routing 100% of product revenue to the DAO matters because it clarifies ownership of cash flows from Aave-branded frontends and services, rather than leaving them with the development company. If implemented and transparently measured, the redirection could expand the DAO’s recurring income, reduce reliance on ad‑hoc grants, and strengthen budgeting for audits, risk management, and upgrades. It would also establish clearer separation between protocol-level fees and product-level monetization.

Critics question the trade-off between the pledge and the size and structure of the ask. “a cash-out framed as a benevolent act” and “extractive,” said Marc Zeller, founder of the Aave Chan Initiative (ACI), as reported by Gate.com (https://www.gate.com/tr/news/detail/18746089?utm_source=openai).

The intensity of the discussion is also informed by an earlier dispute over swap integrations. As reported by Brave New Coin (https://bravenewcoin.com/insights/aave-dao-and-aave-labs-members-clash-over-10-million-in-annual-revenue?utm_source=openai), a prior CoW Swap setup allegedly routed fees away from the DAO to an address associated with Labs, raising concerns about “stealth privatization” of DAO-owned revenue.

According to HTX.com (https://www.htx.com/news/Project%20Updates-j3x2jkal/?utm_source=openai), one delegate analysis estimated that the swap-fee redirection cost the DAO roughly $200,000 per week (about $10 million annually). While figures vary and are subject to audit, these estimates frame why precise definitions and verifiable redirects are central to current deliberations.

Immediate impact on governance, voting power, and DAO treasury

In governance terms, the proposed 75,000 AAVE token grant could materially increase Aave Labs’ voting footprint if not subject to explicit limits. Delegates have warned that bundling revenue alignment, token grants, IP transfers, and version ratifications into one decision, the “four proposals in a trenchcoat” concern, reduces voter clarity and weakens checks and balances. Separating the components into discrete votes would allow more targeted risk assessment.

For the treasury, dedicated product revenue streams, if fully redirected and auditable, may increase runway and optionality for grants, audits, and risk controls. At the same time, the upfront stablecoin outlay and the token grant draw on scarce DAO resources, so the net fiscal effect depends on execution quality, reporting cadence, and enforceability.

Voting-power dynamics also hinge on vesting, lockups, and use-of-proceeds constraints. Without formal restrictions or transparency on voting behavior, the grant could tilt outcomes on budgets, listings, or parameter changes, even if the DAO captures more revenue over time.

Define and audit product revenue across Aave products

For clarity, “product revenue” should be defined as income generated by Aave-branded interfaces and services, such as the aave.com frontend fees, swap-integration spreads, consumer card interchange or spreads, and institutional Aave Pro service fees, distinct from on‑chain protocol interest or reserve factors. Every product and integration should have an enumerated revenue line item and an associated receiving address controlled by the DAO.

Auditability starts with deterministic routing: whitelist on-chain addresses, publish integration contracts, and commit to monthly public dashboards that reconcile on-chain flows with backend logs. Independent attestation by a recognized analytics or accounting provider can verify completeness, while change-management policies document any new revenue sources before activation.

Governance hygiene includes milestone-based disbursements tied to delivered code, timelocked treasury movements, and multisig signers diversified across independent delegates. A standardized revenue accounting policy, ratified through a separate vote, would define scope, cadence, and dispute resolution, reducing ambiguity as products evolve.