Aave temp check backs routing product revenue to DAO, ratifies V4

Aave governance participants approved a temporary check with 52.58% support, about 622,300 YAE, to redirect 100% of gross revenue from Aave-branded products to the DAO treasury and to ratify Aave V4 as the protocol’s primary technical layer. The vote was created Feb. 25, opened Feb. 26 and concluded early Sunday. NAY votes totaled roughly 497,100 (42%), with about 64,200 abstaining (5.42%).

The temp check is a preliminary signal of community backing. A formal ARFC submission is expected next to incorporate feedback and lay out implementation details and timelines before any changes are finalized.

Under the proposed framework, all gross product revenue earned by Aave Labs, net of direct revenue shares and incentives paid to external partners, would flow to the DAO treasury. Products listed in the plan include aave.com and its fees, the Aave App mobile application, Aave Card, Aave Pro, Aave Kit for enterprise integrations, Aave Horizon for real-world-asset and institutional services, and a proposed AAVE exchange-traded product.

The proposal assigns the DAO entitlement to revenue from the swap integration on aave.com, which the document estimates generates about $10 million in annualized revenue and is planned for expansion across more chains and features.

The governance package seeks to formally ratify Aave V4 as the protocol’s core technical foundation. Aave V3 is currently producing more than $100 million in annualized revenue. The plan outlines a three-phase transition for V3-active development, stable maintenance and legacy support-keeping V3 open for withdrawals while adjusting parameters over time to encourage migration to V4 as it matures.

On brand governance, the proposal would create a Foundation to manage trademarks and licensing because the DAO is not a legal entity and cannot directly hold trademarks. The Foundation would license the Aave brand to approved entities and address unauthorized use in line with DAO-established rules. The proposal also includes steps aimed at expanding regulated market access for the AAVE token, including futures and a spot exchange-traded product.

Aave Labs presented a funding request to cover operations after product revenue is redirected to the treasury. The request calls for a primary grant of $25 million in stablecoins—$5 million upfront and $20 million streamed over one year-and 75,000 AAVE that would unlock linearly over 24 months. Additional milestone-based grants of $5 million each are proposed for launches of the Aave App, Aave Pro and Aave Card, and $2.5 million for Aave Kit.

Aave Labs said redirecting product revenue to the DAO would remove its ability to self-fund product engineering, legal defense and business development functions it has handled since 2017, which the funding request is intended to address.

Some governance participants raised concerns about vote concentration and delegation. Community analysis by Marc Zeller alleged the temp check passed only because of votes tied to addresses described as linked to Aave Labs, saying that excluding roughly 233,000 AAVE from three clusters-including a 111,000 AAVE delegation from founder Stani Kulechov-would have produced a NAY majority. The allegation has prompted discussion within the community about delegation practices and voting influence.

If the framework advances, subsequent governance stages would need to finalize the revenue transfer mechanics, the timeline and mechanics for V3-to-V4 migration, the legal structure and charter of the proposed Foundation, and the terms of the Aave Labs funding grants.