On 12 February 2026, Aave Labs asked the community whether it would support redirecting all product-related revenue directly to the Aave DAO. The proposal basically directs 100% of revenue from its branded products directly to the Aave DAO treasury, potentially ending a long-standing conflict over who actually owns the profits of DeFi’s largest lending protocol. Could this move reshape the economics of the world’s largest DeFi lending protocol?
Known as the bank without bankers, Aave allows users to lend and borrow cryptocurrency without a middleman. It runs on code, but it is managed by a Decentralized Autonomous Organization (DAO), which is just a fancy term for a group of people who hold AAVE tokens and vote on decisions.
Commenting on the proposal, founder and CEO of Aave Labs, Stani Kulechov, said, “The Aave Will Win Framework expands Aave DAO’s revenue base beyond protocol revenue established by AIP-1 to include non-protocol and off-chain revenue, materially increasing the DAO’s capacity to grow its treasury. This would position the DAO to fund growth, increase buybacks, and pursue other opportunities as it sees fit.”
He took to X to say that the company “will serve as the backbone of global finance, a market measured in the hundreds of trillions. Building at the product layer creates new revenue for the DAO and helps scale Aave to mainstream adoption and bring DeFi to everyone.”
Today we are proposing the Aave Will Win Framework, a new alignment framework that directs 100% of product revenue to the Aave DAO treasury under a token-centric model. pic.twitter.com/8PyBY1kxSi
— Aave (@aave) February 12, 2026
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Tension Brewing Between DAO And Aave Labs?
However, tension has been brewing between the DAO (the community) and Aave Labs (the private company that builds the software). Last December, Aave Labs decided to keep the transaction fees generated by the aave.com website for themselves rather than sharing them with the community. This sparked accusations of a “slow-motion coup.”
This conflict highlights the governance struggles continuously facing the Ethereum ecosystem, a topic we touch on when asking if Ethereum is dying or flashing a buy signal. Can a decentralized protocol truly be decentralized if one company holds the purse strings?
To squash the beef, Aave Labs released a proposal dubbed the “Aave Will Win Framework.” Ideally, this plan would send all revenue from the Aave frontend, the upcoming Aave Card, and even future ETFs directly to the DAO treasury.
In exchange, Aave Labs is asking for $25 million in stablecoins, 75,000 AAVE tokens (worth roughly $8.3 million), and a mandate to build Aave V4, the next version of the protocol.
While some see this as unifying the community, others are skeptical. Prominent DAO member Marc Zeller called out the move, suggesting it might be an attempt to secure a massive payout under the guise of generosity, said The Block.
This type of treasury negotiation is becoming common as protocols mature. We are seeing similar complex financial structures emerge elsewhere, such as the treasury and collateral decisions driving Hyperliquid hype.
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Potential shift toward traditional shareholder-like model where protocol success directly translates to DAO treasury growth?
For AAVE token holders, the proposal represents a potential shift toward a more traditional shareholder-like model where protocol success directly translates to DAO treasury growth.
If you hold AAVE or use DeFi, this is a pivotal moment. If the proposal passes, the Aave DAO would control a massive revenue stream, potentially making the AAVE token much more valuable fundamentally. It signals that users, not just companies, can own the financial infrastructure they use.
However, handing over $33 million is a risk. Effectively, the community is hiring Aave Labs as a contractor.
Furthermore, the push for Aave V4 involves serious technical upgrades. As we’ve seen with the debates surrounding MegaETH and Layer 2s, updating blockchain infrastructure is high-risk, high-reward. If Aave V4 succeeds, it secures the protocol’s future; if the funding is squandered, the DAO is left holding the bag.
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Key Takeaways
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The proposal, titled “Aave Will Win,” outlines a comprehensive framework designed to govern Aave’s operations for the next decade.
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A crucial element of the proposal involves the creation of a new foundation that would hold Aave’s trademarks and intellectual property on behalf of the community.
The post Aave Labs Proposes Sending 100% Product Revenue To DAO In Major Governance Shift appeared first on 99Bitcoins.
