Aave is preparing for a large-scale governance vote. The platform is considering the possibility of sharing part of off-protocol revenue with AAVE token holders and plans to submit a formal proposal to the community.
This update was released on January 2, 2025, and market sentiment improved immediately. AAVE rose more than 10% that day in response to signs of strengthened collaboration between the development team and the DAO.
Main points of the new Aave proposal
According to the founder of Aave Labs, future proposals will explain how to share the revenue generated outside the core lending protocol with AAVE holders.
This revenue includes those from the official Aave app, swap integrations on the frontend, and future consumer/institutional products built on Aave.
Additionally, safety measures are planned to protect the Aave DAO and prevent drastic changes that would disadvantage token holders.
Another major focus is the management of the Aave brand and user gateway. This includes assets that become Aave's outward face, such as websites, domains, and social media accounts.
The proposal is expected to clarify the ownership, usage, and restrictions on monetization of these assets without DAO approval.
Additionally, the proposal will define Aave's long-term direction. Aave Labs argues that the protocol should expand beyond crypto asset lending and grow towards real assets, consumer, and institutional use cases.
These efforts will rely on upcoming upgrades such as Aave V4 and the expanded use of Aave's stablecoin, GHO.
These movements came in response to weeks of public debate within the Aave ecosystem.
Recently, some delegates criticized Aave Labs for having excessive control over revenue sources and communication channels. They warned that the lack of transparency in governance and ownership has caused AAVE's market value to plummet in recent weeks.
In response, DAO representatives welcomed the change in tone but emphasized that clear and effective commitments are essential. They argued that vague promises are insufficient, and clear rules regarding ownership, revenue distribution, and accountability are necessary.
In this DAO vote, the adoption of this new framework will be decided.
If approved, it would alleviate internal conflicts and serve as a catalyst for restarting Aave's growth and maintaining governance balance. If rejected, discussions over control and direction are expected to continue.
