Aave Labs has put a major new governance plan in front of tokenholders that would send all Aave branded product revenue straight to the Aave DAO treasury, but only if the DAO funds the builder behind it.
Quick Summary – TLDR:
- Aave Labs wants to redirect 100 percent of product level revenue to the Aave DAO treasury.
- In return, Labs is seeking a funding package worth about 50 million, including stablecoins and 75,000 AAVE.
- The proposal also pushes Aave V4 as the long term technical base and outlines a new Aave Foundation to steward the brand.
- Some community voices call it a decentralization milestone, others see it as a costly power shift that needs tighter safeguards.
What Happened?
On 12 February 2026, Aave Labs asked the community whether it would support a framework that routes all revenue from Aave branded products to the DAO. The plan arrives after months of tension over fees, ownership rights, and who ultimately benefits from Aave’s growing product suite.
.@aave Labs has submitted a governance proposal to allocate all of Aave-branded product revenue to the DAO treasuryhttps://t.co/6hn8TYjgs1 pic.twitter.com/MxsZdVUgkr
— ICO Drops (@ICODrops) February 13, 2026
A framework meant to end a long running fight
Aave is often described as a bank without bankers, a protocol where users lend and borrow crypto through smart contracts. But the governance story has been messy. In December, controversy flared after swap fees from the official aave.com frontend were redirected to a company controlled wallet, reigniting fears that a private builder could capture value that tokenholders believed should flow to the DAO.
The new proposal is branded the Aave Will Win Framework, and its headline promise is simple: all product related revenue goes to the DAO. That includes fees tied to the Aave frontend, swap fees linked to Aave V3 and the upcoming Aave V4, and future products such as the Aave App, Aave Pro, Aave Card, Aave Kit, Aave Horizon, plus longer range ideas like a potential AAVE ETF.
Aave Labs is presenting this as a shift toward a more token centric model where value accrues to the people who govern the protocol.
What Aave Labs wants in return?
The revenue offer comes with a price tag. Aave Labs is asking tokenholders to approve a funding package worth about 50 million. Based on the proposal details, that includes:
- Up to 42.5 million in stablecoins, split into 25 million as a primary grant and 17.5 million tied to product milestones.
- 75,000 AAVE tokens, worth roughly 8 million at the time of writing.
- Ongoing support for launches tied to the broader product roadmap.
The stablecoin grants would be streamed over time, while milestone payments would be released when specific products ship.
In plain terms, the proposal would shift Aave Labs into a DAO funded operating model, while consolidating protocol and product revenue at the DAO level.
Aave V4 and the path away from V3
A major pillar of the plan is Aave V4, framed as the long term technical foundation for the ecosystem. Labs argues V4 can unlock new revenue streams and enable expansion into new markets with more flexible, custom risk settings.
Aave V3 is still the workhorse today and is said to generate over 100 million in annualized revenue. Under the proposal, Labs suggests gradually winding down V3 within 8 to 12 months after V4 launches.
IP, a new foundation, and why some members are uneasy?
The framework also includes a plan to move trademarks and intellectual property into a new Aave Foundation that would hold and steward the brand. That matters because a previous governance attempt around brand control has already been tested. On 26 December, tokenholders rejected a proposal to transfer control of the protocol’s brand assets to an entity under the DAO.
Governance critics are now raising fresh concerns. Marc Zeller, founder of the Aave Chan Initiative, has argued the funding package is too large relative to the DAO treasury and has pushed to unbundle the decision into separate votes covering revenue alignment, V4 ratification, foundation creation, and funding. He also called for clearer definitions of revenue, independent verification that product income really flows to the DAO, and more transparency around voting power tied to the 75,000 AAVE grant.
Others see the plan as a workable compromise. Crypto commentator DefiIgnas described the proposal as a “big compromise” that AAVE holders “should like,” while still calling for clearer disclosures around governance voting power.
What Aave leadership is saying?
Aave founder Stani Kulechov has publicly backed the plan and argues it expands what the DAO can fund. As he put it:
He also wrote on X about the same:
Since ETHLend in 2017, our mission has been to bring DeFi to the masses, powered by the Aave protocol and an application layer that now provides access to a $50B+ liquidity network.
— Stani.eth (@StaniKulechov) February 12, 2026
Today, we’re proposing a new framework where Aave Labs becomes fully token-centric and redirects… https://t.co/WlL6cowUEb
What happens next in governance?
Right now, the idea is at the Temp Check stage, which is an initial signal vote before any binding onchain decision. If support is strong, it would move through additional governance steps before any funds are distributed or any structure changes take effect.
SQ Magazine Takeaway
I see why this proposal is turning into a lightning rod. 100 percent revenue to the DAO sounds like a win for tokenholders, but the DAO is being asked to write a very big check and accept a lot of structural changes in one go. If I were voting, I would want separate votes, clear definitions of revenue, and independent verification baked in from day one. Otherwise, this risks becoming a feel good decentralization story that quietly concentrates influence through funding and voting power.
