Aave Labs asked token holders to approve funding packages worth around $50 million, in exchange for redirecting revenue generated by Aave-branded product sales to the Aave DAO Treasury.
It is important to note that the word “you” means “the”. proposal includes up to $42.5 million in stablecoins — $25 million as a primary grant and $17.5 million tied to product milestones. The program also includes 75,000 Aave.AAVEThe tokens are worth approximately $8 million as of the date this article was written. If approved, the stablecoin grant will be distributed over time and payments for milestones will be made upon launch of products.
Aave Labs, in return, would send the DAO 100% of its product level revenue. This includes the fees from aave.com and Aave Card and App, Aave Pro and Aave Kit, and Aave Horizon. This framework asks token holders to approve Aave V4 for the long-term foundation of the protocol and details plans to establish a foundation that will hold the Aave name and brand.
It would be a major shift in Aave’s approach to capturing and distributing value. The proposal would consolidate revenue from protocol and products at the DAO, while shifting Aave Labs towards a DAO funded operating model following months of tension in governance.
Voting power and governance concerns
Members of the community were critical about this funding request. Marc Zeller founded the Aave Chan Initiative. wrote This $50-million package represents an important portion of DAO’s Treasury.
He suggested that separate votes should be taken on revenue alignment and V4 ratification as well as foundation funding, creation, and establishment.
Zeller called For a clearer understanding of “revenue” Verification independent of income flows from the DAO. He expressed concern over the Aave grant of 75,000 tokens, noting governance tokens have voting power. He suggested that DAO token recipients should reveal their wallet holdings.
Crypto commentator DefiIgnas described The proposal is a “big compromise” The AAVE card holders “should like,” He also stated that it would be better to disclose the governance voting powers tied to 75,000 AAVE.
Aave labs described the proposal as an attempt to move towards a “token-centric” Model that aligns the DAO with value accrual. Aave founder Stani Kulechov said On X it is stated that directing revenue from the DAO to its growth would increase their capacity to support other initiatives.
“This would position the DAO to fund growth, increase buybacks, and pursue other opportunities as it sees fit,” Kulechov wrote.
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Proposal follows rejected IP vote
This proposal comes after another recent governance controversy. Aave Tokenholders rejected the proposal made on December 26. transfer control of the protocol’s brand assets A majority of the DAO votes against any measure that is proposed for an entity.
On Jan. 3, Kulechov outlined a broader strategy Expand beyond Decentralized Finance (DeFi), and reconsider how revenue from non-protocol flows to tokenholders.
This proposal combines revenue consolidation, V4 approval and a brand new foundation in one strategic pitch.
Prior to any vote onchain, Temp Check (an initial vote signal) was used as a way of measuring community support. Before any funds can be distributed, if the proposal is accepted it will move on to additional governance levels.
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Source: cointelegraph.com
