Aave Labs proposes framework to push all revenue to DAO

Aave Labs (AAVE) has introduced a new proposal, the Aave Will Win Framework, designed to better align incentives across its ecosystem. The proposal suggests channeling all revenue generated from Aave-branded products directly into the treasury managed by the Aave DAO.

Aave Labs to initiate new DAO framework to strengthen ecosystem

Aave Labs, the development entity behind the leading DeFi lending protocol Aave, has unveiled a new strategic proposal dubbed the "Aave Will Win Framework," according to a Thursday X post.

The initiative aims to fully align the protocol's ecosystem by directing 100% of revenue from Aave-branded products back to the Aave DAO treasury. The move expands the DAO's revenue streams beyond traditional protocol fees, positioning the AAVE token as the central point of value accrual under a token-centric model.

"The Aave Will Win Framework expands Aave DAO's revenue base beyond protocol revenue established by AIP-1 to include non-protocol and offchain 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," wrote Aave founder Stani Kulechov in an X post.

A key pillar is the ratification of Aave V4 as the protocol's foundational upgrade, featuring scalable enhancements such as real-world asset (RWA) integration, unified liquidity via a hub-and-spoke model, and institutional-grade tools designed to handle trillions in on-chain finance. Kulechov stated that as fintechs and institutions enter DeFi, this structure will help Aave capture major growth markets and serve as the backbone of global on-chain credit.

The proposal formalizes Aave Labs' long-term commitment to the protocol's decentralized governance body while enhancing its capacity to fund growth, buybacks, and innovation. 

"We believe Aave will serve as the backbone of global finance, a market measured in the hundreds of trillions," Kulechov added.

The announcement comes amid prior community discussions on brand control and economic alignment, with the plan seeking to resolve tensions through clearer incentives.

The proposal is currently in the temperature check phase on the Aave governance forum, where it has garnered supportive commentary from delegates and observers. Supporters argue that if it advances through voting stages and gains approval, the "Aave Will Win Framework" could enhance decentralization, treasury sustainability, and Aave's competitive positioning in the evolving DeFi landscape.

AAVE risks decline to $77 if $97 support fails

In the daily chart, AAVE/USDT trades at $112.19, up about 2% over the past 24 hours. The 20-day Exponential Moving Average (EMA) at $125.06 slopes lower, keeping the pair capped beneath its dynamic resistance. The average continues to decline, reinforcing a bearish bias.

The Relative Strength Index (RSI) at 36 and Stochastic (Stoch) at 42 stay below their neutral levels, signaling subdued momentum.

A sustained close above the 20-day EMA could open a recovery, whereas a break of the support band would revive the downtrend toward $77.10. On the upside, a descending trend line from $299.23 further limits gains, with resistance near $147.

(The technical analysis of this story was written with the help of an AI tool.)