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Aave DAO approves $25 million funding and V4 roadmap for Aave Labs

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Aave price bleeds quietly as DeFi’s blue chips are sold to feed new fads

Aave Labs is set to receive a massive capital injection following the approval of a strategic roadmap designed to scale the protocol.

Summary

  • The Aave DAO has approved a $25 million stablecoin grant and a 75,000 AAVE token allocation for Aave Labs to fund ongoing protocol development.
  • Aave Labs will transition to a DAO-funded operating model where revenue from specific products flows directly into the treasury rather than being retained by the core team.
  • The approved framework establishes Aave V4 as the long-term technical foundation and introduces a new governance structure to manage the protocol brand and institutional expansion.

According to the governance dashboard, the Aave DAO voted on Saturday to grant the development team $25 million in stablecoins and 75,000 AAVE tokens. The funding, part of the “Aave Will Win” framework, passed with roughly 75% support. 

The stablecoins will be distributed over the next 12 months to cover operational costs, while the token package will vest over a four-year period to keep developers incentivized.

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This decision changes how the protocol handles its finances. Under the new model, revenue from products like Aave Pro will go directly to the DAO treasury rather than staying with Aave Labs. 

In exchange, the DAO takes over the responsibility of funding the lab’s core operations. The protocol, which currently holds over $25 billion in total value locked, also officially recognized Aave V4 as its long-term technical architecture.

Founder Stani Kulechov described the move as a defining moment for the ecosystem. 

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“Aave Will Win is the most important proposal in Aave’s history and it just passed with a landslide,” Kulechov shared on X. 

“If you own AAVE, you own not just the economic rights of the protocol, but the brand, the users, and the integrations,” he added.

Aave Labs noted that the industry is changing as traditional fintech firms and institutions move on-chain. With regulatory clarity improving in several regions, the team plans to focus exclusively on Aave-linked products to stay ahead of the competition. They believe the winners of the next decade will be the ones who can capture new markets quickly.

Despite the successful vote, the path to approval was not without tension. Some community members questioned the sheer size of the $25 million package and the voting power tied to the 75,000 tokens. These disagreements previously led the Aave Chan Initiative, a prominent delegate, to scale back its involvement with the DAO, citing concerns over how the proposal process was handled.

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Looking ahead, the framework also includes plans for a new foundation to manage the Aave brand. This follows a failed attempt in January to transfer intellectual property to the DAO, a topic that has sparked ongoing debate about how much control the community should have over the protocol’s identity. Future grants for specific product launches will still require separate votes from the DAO.

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Crypto World

Musician Loses $420K Bitcoin From Fake Ledger App

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Musician Loses $420K Bitcoin From Fake Ledger App

Blockchain sleuth ZachXBT said Garrett Dutton’s 5.9 Bitcoin has already been sent to deposit addresses associated with KuCoin.

Garrett Dutton, an American musician better known as “G. Love,” said he lost $420,000 worth of Bitcoin after installing a malicious app impersonating the self-custody crypto app Ledger Live from Apple’s App Store and entering his seed phrase.

“I had a really tough day,” Dutton told his 67,500 followers in a post on X on Saturday, adding that he lost his 5.9 Bitcoin (BTC) stash “in an instant” after spending about 10 years accumulating the coins to secure his retirement.

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Source: Garrett Dutton

In a follow-up post, crypto sleuth ZachXBT said that Dutton’s Bitcoin has been sent to deposit addresses linked to the crypto exchange KuCoin across nine transactions. KuCoin replied to the post with a statement typically addressed to customers.

The incident highlights a continued problem that bad actors have posed in the crypto industry. On Tuesday, the US Federal Bureau of Investigation reported that Americans lost over $11 billion from crypto-related incidents in 2025, up from the $9 billion recorded the previous year.

Related: Hong Kong retiree loses $840K in triple ‘crypto expert’ scam

Dutton said he was tricked into sharing his seed phrase after downloading the malicious software on his new Apple MacBook Neo but didn’t share which link he used.

“I been in the crypto circus since 2017. Today they caught me off guard. It was my own damn fault for not being more diligent. But let it serve as a warning. There’s so many scams,” he added.

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Cointelegraph was unable to find the fake Ledger app on Apple’s App Store at the time of writing. Cointelegraph reached out to Apple for comment but did not receive an immediate response.

Fake Ledger apps have appeared on Microsoft’s store

Scammers have been adopting this fake Ledger app strategy since at least 2023.

That year, almost $600,000 worth of Bitcoin was stolen from several users who downloaded a fake Ledger Live application from Microsoft’s app store.

Microsoft admitted that the malicious app had bypassed its review process and took it down shortly after.

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Magazine: Asia Express: Phantom Bitcoin checks, China tracks tax on blockchain