- Aave Labs has proposed a new framework directing all revenue from Aave-branded products to the Aave DAO.
- The move aims to resolve internal conflict, as influential DAO members recently accused Labs of orchestrating a “slow-motion coup.”
- The proposal also seeks to ratify Aave v4 as the core future platform and allocate $25 million for Labs’ continued development.
Aave Labs made a pivotal proposal on Thursday to share all revenue from Aave-branded products with the Aave DAO. This move is intended to settle a long-running dispute over control of the $26 billion decentralised finance protocol.
Consequently, the proposal seeks to formally center Aave v4 as the protocol’s future technical foundation. The proposal would also authorize $25 million in funding for Labs’ ongoing work.
However, tension had been building within the DAO, which is meant to be controlled by its token holders. Influential members chafed at Labs’ influence, a conflict that boiled over publicly in December.
Some DAO members wanted Labs to relinquish the Aave brand entirely. One member even accused the company of executing a “slow-motion coup.”
Meanwhile, Stani Kulechov, the founder of Aave Labs, stated the framework formalizes its role as a long-term contributor. “As onchain finance enters a decisive new phase… this framework positions Aave to capture major growth markets,” Kulechov said.
Nevertheless, it remains unclear how the broader DAO will respond. For instance, delegate Marc Zeller of the Aave Chan Initiative criticised the proposal for a lack of prior consultation.
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