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Aave Labs proposed directing 100% of product revenue to the Aave DAO.
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The plan includes transferring IP to a new foundation.
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Labs requested $25 million in funding plus 75,000 AAVE tokens.
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The proposal follows governance tensions between Labs and the DAO.
A Major Governance Shift
Aave Labs submitted a proposal that would send all revenue from Aave-branded products to the Aave DAO treasury. This includes swap fees from Aave v3 and v4, frontend earnings, and future business lines such as the Aave Card and potential ETF products.
The proposal also suggests creating a new Aave Foundation to hold trademarks and intellectual property.
The move comes after months of tension between Aave Labs and the DAO over ownership and revenue control. Previous disputes included redirecting frontend swap fees and a failed attempt by token holders to seize company assets.
Funding Request Raises Debate
In exchange for giving up revenue, Aave Labs requested $25 million in stablecoins, 75,000 AAVE tokens vesting over two years, and additional grants for product launches.
The proposal centers on the upcoming Aave v4, which promises new revenue streams through a hub-and-spoke model designed to expand into new markets.
While some see the plan as aligning incentives with token holders, critics argue the funding request effectively shifts operational costs to the DAO. Governance discussions are ongoing, with no binding decision yet.
