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Aave Proposal Pits DAO Against Labs in $50M Brand Battle

Aave’s governance proposal splits revenue but demands a large treasury grant.

  • Aave Labs proposes directing 100% of product revenue to its DAO treasury.
  • The framework includes a $25 million stablecoin and 75,000 AAVE token funding request for Labs.
  • DAO delegates welcome revenue direction but criticize the large funding request and governance concerns.
  • A new foundation would be established to steward the Aave brand, addressing prior disputes.
  • Critics argue the proposed revenue calculations and voting power increase give Labs too much discretion.

Aave Labs ignited fresh debate within its decentralized community on February 12, 2026, by publishing a nearly 4,000-word governance proposal. The “Aave Will Win Framework” aims to resolve an existential ownership dispute that has simmered since December, pitting the core development team against its governing DAO. This follows a period of conflict over swap fees and brand monetization rights.

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At its core, the plan directs all product revenue to the Aave DAO treasury. It also establishes a foundation to steward the Aave brand, addressing DAO concerns about Labs capturing value from front-end products. However, this alignment comes with a substantial price tag for the decentralized autonomous organization.

Consequently, Aave Labs requests a significant grant of $25 million in stablecoins and 75,000 AAVE tokens. An additional $17.5 million is tied to future product launches, according to the post. The stablecoins would be partially paid upfront, with the rest streamed over a year.

Meanwhile, prominent DAO delegate Marc Zeller reacted harshly at first, calling the proposal extractive. A follow-up post recognized a “victory” for the DAO but warned the funding represents 31.5% of the entire treasury. He criticized the revenue calculation method, stating “deductions are at Aave Labs’ sole discretion.”

Furthermore, granting 75,000 more AAVE tokens would amplify Aave Labs’ existing influence over governance votes. Labs has previously used its voting power during sensitive periods, including a surprise holiday vote that defeated a contributor proposal. Zeller also suspects undisclosed Labs-linked wallets influenced a recent, narrowly-rejected governance vote on disclosure rules.

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