Aave Labs has formally submitted a proposal to request a funding package of nearly 50 million dollars in exchange for redirecting all product revenue to the Aave DAO treasury. This move, reported this February 13, seeks to centralize the capital flow from platforms such as Aave.com and the future Aave Card within the community governance framework.
The requested package includes 42.5 million dollars in stablecoins, of which 25 million would act as a primary grant and the rest would be released upon reaching specific development milestones. Likewise, the delivery of 75,000 AAVE tokens, valued at 8 million dollars, is contemplated, which would consolidate the decentralized finance protocol under an operating model funded directly by the decentralized autonomous organization.
By proposing this change, Aave Labs aims to ratify the V4 version as the long-term technical foundation of the ecosystem, also establishing a foundation to steward the brand. However, the magnitude of the figure has sparked debate among members, who question the impact on the available liquidity of the treasury, suggesting that a transfer of such caliber requires extremely rigorous and transparent oversight.
Governance concerns over voting power concentration
The request for 75,000 native tokens has raised alarms among prominent figures such as Marc Zeller, founder of the Aave Chan Initiative, due to the political implications. Since these are assets with voting rights, the massive delivery of tokens could excessively concentrate decision-making power in a single entity, compromising the democratic nature that defines any high-profile Defi today.
Zeller has advocated for breaking down the vote into separate proposals to independently analyze the ratification of V4 and the creation of the foundation. In addition, independent verification of the income that will flow to the DAO has been demanded, ensuring that token holders receive tangible benefits and not just a promise of future income that could be affected by financial market volatility.
For his part, founder Stani Kulechov defended the proposal on social media, arguing that this “token-centric” model will allow for increased asset buybacks and financing of expansive growth initiatives. In this way, the DAO would gain the ability to pursue new strategic opportunities, positioning the protocol as a robust infrastructure capable of competing with traditional financial services in efficiency and operational transparency.
What impact will this model change have on the AAVE market?
The transition towards a scheme where the DAO captures all the value generated by branded products represents an unprecedented milestone for the sector. If investors perceive that the accumulated value directly supports the token, the asset’s price could react positively to the prospect of higher buybacks and strengthened governance, thus attracting new institutional participants interested in structural profitability.
However, the previous rejection of proposals related to intellectual property suggests that the path to approval will not be simple or free of political friction. If the community decides that the cost is too high, the decentralized finance protocol could face a period of operational stagnation, forcing developers to seek external funding alternatives that could dilute the original vision of absolute decentralization initially proposed.
Ultimately, the success of this initiative will depend on the clarity of disclosures regarding voting power and the technical feasibility of V4. Therefore, the coming days will be crucial to measure support in the “Temp Check” signal vote, as the resolution of this conflict will define the course of the platform in its ambition to expand beyond crypto lending to encompass global financial services.
