Aave Labs Proposes Full Revenue Transfer to DAO Treasury, Seeks $25M Funding

2 hour ago 5 sources positive

Key takeaways:

  • This proposal signals Aave's strategic pivot towards greater decentralization, potentially boosting AAVE token utility and governance value.
  • The $25M funding request highlights ongoing development costs, requiring investors to monitor DAO treasury health and future dilution risks.
  • Establishing a brand foundation mitigates legal risks, a critical step for DeFi protocols navigating increasing regulatory scrutiny.

In a significant governance proposal submitted to the Aave DAO, Aave Labs has suggested a major restructuring of its financial relationship with the decentralized autonomous organization. The core of the proposal is the commitment to transfer 100% of the revenue generated from all products developed under the Aave brand directly to the Aave DAO treasury. This move is explicitly designed to bolster the protocol's sustainable growth and enhance the financial strength of the DAO itself.

Alongside this revenue-sharing model, Aave Labs has made a substantial funding request. The proposal asks the DAO for an allocation of $25 million worth of stablecoins and 75,000 AAVE tokens. These funds are earmarked to support Aave Labs' operational and strategic growth objectives, including ongoing development activities and ecosystem expansion.

The proposal also includes a structural component aimed at long-term brand security. It suggests the establishment of an independent foundation or trust structure to hold and protect the commercial rights and trademark to the Aave brand. This entity would ensure the strategic use and legal protection of the brand's intellectual property moving forward.

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