Aave Labs has unveiled a new governance proposal that would shape the next chapter of one of the largest crypto lending platforms and send all revenue from Aave-branded products to its community treasury.
The proposal, called “Aave Will Win,” asks Aave DAO to approve a broader strategy based on its upcoming V4 update. If approved, the plan would make V4 the foundation for Aave’s future development and formalize a structure where 100% of revenue from products built by Aave Labs flows directly to the DAO.
The AAVE token has gained around 2% following the news, even as the broader crypto market is selling off heavily on Thursday.
In simple terms, that means that any money generated from Aave-branded apps, institutional offerings, or business tools would return to the community-controlled treasury rather than the development company itself.
“The framework formalizes Aave Labs’ role as a long-term contributor to the Aave DAO under a token-centric model, with 100% of product revenue directed to the DAO,” said Stani Kulechov, founder of Aave Labs, in a press release shared with CoinDesk. “As on-chain finance enters a decisive new phase, with fintechs and institutions entering DeFi, this framework positions Aave to capture important growth markets and win over the next decade.”
The proposal comes against a backdrop of discord within the Aave community over control of the protocol’s brand and key assets. By late 2025, community members were sharply divided over whether the DAO or Aave Labs should control trademarks, domains, social accounts, and other brand assets, with critics arguing that concentrated control by Labs risked undermining the spirit of decentralization. That fight highlighted broader tensions over how much influence founding teams should retain once a protocol decentralizes.
Aave is already one of the largest decentralized lending protocols in crypto, allowing users to borrow and lend digital assets without relying on traditional banks. The new proposal is designed to help the protocol compete as more fintech companies and financial institutions explore blockchain-based products.
At the center of the plan is Aave V4, a major software update intended to facilitate the launch of new markets and financial products on top of the protocol. Instead of requiring major changes to the core system every time something new is introduced, V4 is designed to make expansion faster and more flexible while maintaining security.
The proposal also introduces the idea of launching separate markets with different risk and income structures. This could allow Aave to support specialized use cases, including institutional participation, without affecting the broader protocol.
A key part of the framework is a change to the way revenue flows into the DAO. Currently, Aave derives income primarily from lending activity. Under the proposal, revenue from additional products created by Aave Labs, such as user interfaces and institutional services built around the protocol, would also be directed to the DAO treasury. The goal is to diversify revenue and more closely align product development with incentives for token holders.
The proposal further calls for the creation of a foundation dedicated to maintaining and protecting Aave’s brand and trademarks, since decentralized organizations cannot directly own intellectual property. More details on that structure will be introduced in a follow-up vote.
If approved, additional proposals will outline how V4 will be activated and how funding will be structured. Together, the framework signals Aave’s ambition to evolve from a leading DeFi lending protocol to a broader piece of global financial infrastructure governed by its DAO.
Read more: ‘The biggest debate over token holder rights’: Aave faces an identity crisis
