Aave launches the "100% Revenue to DAO" proposal: DeFi governance model may face significant restructuring.

AAVE-4,63%

Gate News reports that the DeFi protocol Aave recently proposed a key governance proposal to allocate 100% of all product revenue to the DAO treasury, sparking widespread market attention on the reshaping of decentralized finance’s profit models. The proposal is called the “Aave Winning Framework” and is currently in the community review stage. If approved, it will be submitted for on-chain voting execution.

According to the proposal design, all future revenue from ecosystem products, including Aave App, Aave Pro, and Aave Card, will flow directly back to the DAO rather than being retained by the development entity. This model emphasizes the value distribution logic of “protocol as community,” making the DAO the core beneficiary of the entire ecosystem. Meanwhile, Aave Labs commits to no longer developing independent profit-making projects in the future, but instead will focus entirely on the Aave ecosystem, strengthening the alignment of interests between the community and developers.

In terms of funding arrangements, Aave Labs is applying for $25 million in stablecoins and 75,000 AAVE tokens for development and expansion over the next year. These tokens will be unlocked over four years to ensure long-term incentive consistency. Additionally, the proposal plans approximately $17.5 million for product incentives, focusing on promoting user growth and usage rates for Aave App and Aave Pro, with funds released in phases and tied to milestones.

To enhance transparency, the proposal introduces a quarterly reporting mechanism, requiring Aave Labs to regularly disclose the use of funds and key performance indicators, including user scale, asset scale, and revenue data. Different products will set independent KPIs to enhance community oversight and governance efficiency.

Currently, Aave is one of the leading protocols in the DeFi space by revenue scale, with an annualized income exceeding $100 million. With the advancement of the Aave V4 upgrade, new features and fee mechanisms are expected to further expand revenue sources. Against this backdrop, the “100% revenue to DAO” proposal is seen as a deep evolution of DeFi governance and value distribution structure.

Next, the community voting results will be a key variable. If the proposal is implemented, Aave may become one of the most community-driven financial protocols in the cryptocurrency industry.

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