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

ZkProver · 2026-02-26T03:35:28+00:00

Aave Labs proposed transferring all brand product revenues to the Aave DAO and requested $25 million in stablecoins and AAVE to support operations. The proposal sparked controversy, with the founder of the Aave Chan Initiative believing this is a covert cash-out attempt and questioning its legitimacy in governance.

ZkProver

2026-02-26 03:35:28

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

Under the proposal, Aave Labs will relinquish all future income from Aave v3 and v4 protocols, aave.com frontend, Aave Card, and AAVE ETF. In exchange, they ask the DAO to commit $25 million in stablecoins and 75,000 AAVE tokens to cover operational expenses, along with five 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. They plan 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 pause new features for v3.

Marc Zeller, founder of the Aave Chain Initiative, opposes this. Zeller describes it as a “pseudo-goodwill cash-out attempt,” claiming Labs is trying to use the aggressive proposal as leverage in negotiations, “regardless of governance processes, they are trying to impose outcomes.” He estimates Labs’ actual funding needs at around $50 million and questions the legitimacy of their governance.

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