Aave Labs seeks $50M grant to redirect product revenue to DAO

Some community members questioned the size of the $50 million package and warned that the proposed AAVE token grant could concentrate voting power.

Aave Labs has asked tokenholders to approve a funding package worth about $50 million in exchange for redirecting all revenue from Aave-branded products to the Aave DAO treasury.

The proposal includes up to $42.5 million in stablecoins — $25 million as a primary grant and $17.5 million tied to product milestones. It also includes 75,000 Aave (AAVE) tokens, worth about $8 million at the time of writing. The stablecoin grants, if approved, will be streamed over time, and milestone payments will be released upon product launches. 

In return, Aave Labs would route 100% of product-level revenue to the DAO. That includes fees generated by aave.com, the planned Aave App and Aave Card, Aave Pro, Aave Kit and Aave Horizon. The framework also asks tokenholders to ratify Aave V4 as the protocol’s long-term technical foundation and outlines plans to create a foundation to hold and steward the Aave brand. 

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