Aave Labs Proposes Token-Centric Operational Model To Strengthen DAO Alignment And DeFi Leadership

Aave, a decentralized non-custodial liquidity protocol, has released the ARFC for its new strategic framework, the Aave Will Win proposal. The framework, developed by Aave Labs, is designed to align the protocol’s operations with the Aave DAO by directing 100% of revenue from Aave-branded products to the DAO treasury and establishing a one-year budget for continued development under an accountable, token-centric model. 

The proposal also includes a commitment to safeguard the Aave brand and its intellectual property. Separate governance proposals will address the ratification of Aave V4 and the detailed structure for brand governance.

The Aave Will Win framework outlines a comprehensive operational approach in which Aave Labs focuses exclusively on Aave-related products, protocol development, and ecosystem growth. Revenue from all products, including:

• Aave.com,
• Aave App,
• Aave Pro,
• Aave Kit,
• Aave Horizon,
• future Aave-branded offerings, would flow directly to the DAO treasury. 

This approach ensures that all product revenue benefits the DAO, while Aave Labs receives DAO funding to maintain and expand the platform. Any unspent funds at the end of the 12-month period would be returned to the DAO or rolled into a subsequent DAO-approved budget.

The framework builds on Aave’s history as a major player in decentralized finance, where the protocol commands a 60% share of the lending market. The proposal emphasizes that previous revenue models allowed Aave Labs to self-fund product development, legal compliance, and marketing while the DAO supported core protocol upgrades. 

The new framework formalizes a token-centric model and strengthens the alignment between Aave Labs and the DAO to support growth in a rapidly evolving DeFi environment.

Operational Roadmap, Funding, And Expanded Responsibilities

Aave Labs requests $25 million in stablecoins and 75,000 AAVE tokens over the next year to fund core protocol development, the GHO stablecoin, user-facing applications, and developer tools. Additional growth and development grants are structured to support milestones for the Aave App, Aave Pro, Aave Card, and Aave Kit, ensuring accountability and transparency for disbursements. The proposal includes quarterly revenue reporting, third-party verification, and clear definitions of revenue and allowable deductions to maintain DAO oversight.

The framework also incorporates a roadmap to expand responsibilities previously handled by departing service providers BGD Labs and ACI, covering protocol maintenance, product engineering, security coordination, business development, legal compliance, and institutional support. By consolidating these functions and linking product revenue to DAO growth, Aave Labs aims to ensure the protocol can compete with well-capitalized financial technology firms and maintain leadership in decentralized finance over the next decade.

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