Aave Labs Proposes Redirecting 100% of Protocol Revenue to DAO in Exchange for Continued Funding

Aave Labs, the core development team behind the Aave decentralized finance (DeFi) protocol, has submitted a new proposal aimed at restructuring the protocol’s financial model. Under the proposal, 100% of the revenue generated by the protocol would be funneled directly into the Aave DAO treasury. In exchange for this transfer of revenue, Aave Labs is requesting a multi-year funding commitment from the DAO to support ongoing development, operational costs, and the implementation of the ‘Aave 2030’ roadmap. This initiative is designed to consolidate the protocol’s earnings under decentralized governance, providing the DAO with full control over capital allocation while securing a sustainable runway for the development team to build future iterations, including Aave V4. The proposal highlights a shift toward greater financial transparency and aligns the interests of the development team with the long-term growth of the Aave ecosystem.

Source: Aave Labs proposes sending 100% of protocol revenue to DAO in exchange for funding