Aave Labs has introduced a new governance proposal that would shape the next chapter of one of crypto’s largest lending platforms and return all revenue from Aave-branded products to the community’s coffers.
The proposal, called “Aave Will Win,” asks the Aave DAO to adopt a broader strategy built around the upcoming V4 upgrade. If the plan is adopted, V4 would provide the foundation for Aave’s future development and formalize a structure in which 100% of revenue from Aave Labs-built products flows directly to the DAO.
The AAVE token has gained about 2% on the news, even as the broader crypto market sells off heavily on Thursday.
Simply put, this means that any money generated by Aave-branded apps, institutional offerings, or enterprise tools would go back into the community-controlled coffers instead of 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 going to the DAO,” said Stani Kulechov, founder of Aave Labs, in a press release shared with CoinDesk. “As onchain finance enters a decisive new phase, with fintechs and institutions entering DeFi, this framework positions Aave to capture major growth markets and win in the coming decade.”
The proposal comes against a backdrop of disagreement within the Aave community over control of the protocol’s brand and key assets. In late 2025, community members became 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 threatened to undermine the spirit of decentralization. That battle exposed broader tensions over how much influence the founding teams should retain once a protocol becomes decentralized
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 aims to help the protocol compete as more fintech companies and financial institutions explore blockchain-based products.
Central to the plan is Aave V4, a major software upgrade intended to make it easier to launch new markets and financial products on top of the protocol. Rather than 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 shift in the way revenue flows into the DAO. Currently, Aave primarily earns revenue from lending activities. Under the proposal, revenue from additional Aave Labs-built products, such as user interfaces and institutional services built around the protocol, would also go to DAO coffers. The goal is to diversify revenues and better align product development with token holder incentives.
The proposal further calls for the creation of a special foundation to preserve and protect Aave’s brand and trademarks, as decentralized organizations cannot directly own intellectual property. More details about that structure would be introduced in a follow-up vote.
If approved, additional proposals will outline how V4 will be activated and how funding will be structured. Taken together, the framework signals Aave’s ambition to evolve from a leading DeFi lending protocol to a broader piece of global financial infrastructure managed by its DAO.
Read more: ‘Most important debate over token holders’ rights’: Aave faces an identity crisis