Aave Governance Vote Sparks AAVE Price Surge as Revenue Sharing Proposal Emerges

Aave is preparing for a pivotal governance vote that could reshape the relationship between the protocol, its development arm, and AAVE token holders. On January 2, 2025, Aave Labs founder Stani Kulechov confirmed that a formal proposal will soon be submitted to the Aave DAO, exploring the possibility of sharing a portion of off-protocol revenue with AAVE holders. The announcement immediately boosted market sentiment, with the AAVE price surging more than 10% in a single day as investors reacted positively to the prospect of stronger alignment between the DAO and Aave Labs.

The upcoming proposal is expected to focus on revenue generated outside Aave’s core lending protocol. This includes income from the official Aave app, front-end swap integrations, and potential future consumer and institutional products built on top of the Aave ecosystem. By outlining how this off-protocol revenue could be distributed, the proposal aims to address long-standing concerns about value capture and tokenholder incentives. Importantly, the framework will also include safeguards designed to protect the DAO and prevent abrupt changes that could negatively impact AAVE holders.

Another major element of the proposal involves governance and control over the Aave brand and user-facing gateways. Assets such as websites, domains, and social media accounts play a critical role in shaping public perception of the protocol. The proposal is expected to clarify ownership of these assets, define how they can be used, and set limits on monetization without explicit DAO approval, responding directly to recent criticism from community delegates.

The initiative follows weeks of internal tension within the Aave ecosystem, during which some DAO members accused Aave Labs of excessive control over revenue streams and communication channels. Critics argued that this uncertainty contributed to a recent decline in AAVE’s market value. While DAO representatives have welcomed the shift toward clearer governance, they continue to stress the need for enforceable, transparent rules rather than broad assurances.

Beyond governance, the proposal also signals Aave’s long-term strategic vision. Aave Labs believes the protocol must expand beyond crypto-native lending into real-world assets, consumer applications, and institutional finance, supported by future upgrades like Aave V4 and broader adoption of GHO, Aave’s native stablecoin. The outcome of the upcoming DAO vote will be crucial in determining whether Aave can successfully balance innovation, growth, and decentralized governance moving forward.