Aave Labs Proposes $50M Grant to Redirect Product Revenue to DAO
Aave Labs has submitted a to the Aave DAO requesting up to $50 million in capital in platform for sending any revenue from Aave-branded products directly to the DAO treasury. The goal of the change is to make the interests of the development team and token holders more similar while moving Aave Labs toward a DAO-funded business model.
The idea, which begined as a Temp Check to gauge community support, includes multiple parts. It wants $42.5 million in stablecoins, including a $25 million main grant and $17.5 million in milestone-based payments tied to product launches. It also wants 75,000 , which are worth around $8 million at current pricing.
In platform, promises to send all of its product-level revenue to the DAO. This comprises costs from the aave.com interface, swap fees from Aave V3 and the planned V4 protocol, and fees for the Aave App, Aave Card, Aave Pro, Aave Kit, and Aave Horizon.
The framework further states that Aave V4 should be approved as the protocol’s long-term technical foundation, and that a new foundation should be established to hold and manage the Aave brand.
Stani Kulechov on Aligning Strategies
Stani Kulechov, the founder of Aave, about how the ecosystem could benefit from it. “This would put the DAO in a excellent position to fund growth, purchase back more, and look for other opportunities as it views fit,” he said.
The suggestion comes later than previous talks about governance, including a December vote that failed to grant a DAO entity ownership over brand assets, and Kulechov’s January ambitions to expand beyond core while again exploring non-protocol revenue streams.
Concerns and Comments From The Community
The package has caused a lot of discussion among the Aave community. Marc Zeller, who begined the Aave Chan Initiative, out how large the ask was compared to the DAO’s treasury and called for changes to the way things are set up. He for the vote to be split into several propositions, for “revenue” to be more clahead defined, and for independent verification systems.
DefiIgnas, a crypto critic, the deal a “large compromise” that AAVE holders “should like.” He also said that there should be more information about how the 75,000 AAVE award could consolidate governance voting power.
Some in the community have questioned the size of the $50 million package and are worried that the could affect voting. They want more information about the wallet holdings that accompany it. If the Temp Check goes well, the proposal will proceed through additional governance steps, such as on-chain binding voting, before any money is disbursed or revenue is redirected.
The endeavour is part of ongoing efforts to increase the value of the the most popular DeFi lending mechanism. The concept aims to improve long-term sustainability, facilitate token purchasebacks, and fuel ecosystem growth under decentralised control by combining treasury-level revenue streams.
