Aave Labs Seeks $33 Million from DAO in Exchange for Product Revenue Rights

Aave Loses $500M in Market Value Amid DAO–Aave Labs Clash
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Aave Labs, the centralized development company behind the decentralized lending protocol Aave, submitted a new governance proposal titled “Aave Will Win Framework” to the Aave DAO portal. The document outlines the strategic direction for the protocol’s next phase and includes a request for approximately $33.3 million in funding.

Under the proposal, Aave DAO would receive 100% of all product revenue generated by Aave Labs, while formally endorsing the strategic roadmap for Aave V4. The plan also calls for the creation of a foundation tasked with stewarding and managing the Aave brand.

The most contentious element centers on the funding request. Aave Labs is asking the DAO to transfer $25 million in cash and 75,000 AAVE tokens from the treasury to cover various operational and development costs associated with the proposed framework.

Initial reaction within the community has been critical. Several DAO participants have questioned the absence of clearly defined contractual commitments tied to future revenue flows. Marc Zeller, founder of the Aave Chan Initiative and a prominent governance contributor, publicly criticized the proposal, arguing that it would allocate roughly one-quarter of the DAO’s treasury in exchange for undefined future revenues and without enforceable guarantees.

The debate highlights ongoing tensions between Aave Labs as a centralized development entity and the decentralized governance structure of the DAO. While Aave Labs maintains that the framework establishes a foundation for long-term growth, some governance members argue that the proposal lacks sufficient safeguards to justify the requested allocation.

The proposal remains under discussion on the governance portal, though early feedback suggests substantial resistance among active delegates and token holders.


Source: Aave Labs, Aave DAO Governance Portal


Disclaimer: Crypto Economy Flash News is prepared using official and publicly available sources verified by our editorial team. Its purpose is to provide rapid updates on relevant developments within the crypto and blockchain sector.

This information does not constitute financial advice or an investment recommendation. Readers should verify official project channels before making related decisions.

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