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Aave Labs proposes sending all revenue to Aave DAO

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Aave founder Stani Kulechov drops $30m on London mansion

Aave Labs has floated a new plan that could send all product revenue to the Aave community.

Summary

  • Aave Labs proposed sending 100% of product revenue to Aave DAO.
  • The plan covers fees from Aave v3, v4, aave.com, and future products.
  • In return, Labs is seeking funding from the DAO to support operations.

Aave Labs has unveiled a new governance proposal that could reshape how revenue flows within the Aave ecosystem. In a non-binding “temperature check” posted on Feb. 12, the company asked the community whether it would support sending all product-related revenue directly to the DAO.

The proposal, titled “Aave Will Win,” suggests that income from Aave-branded products should be re-directed to the protocol’s governing body, Aave DAO, rather than remaining with the development team.

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A plan to redirect revenue to the DAO

Under the proposal, Aave Labs wants 100% of revenue from its products to flow into the DAO treasury. This includes swap fees from Aave v3 and the upcoming v4, earnings from the official aave.com interface, and income from future ventures such as the Aave Card and possible ETF-related products.

If approved, this structure would place token holders at the center of value creation. Supporters say it could reduce concerns about “value leakage,” where parts of the ecosystem generate income without benefiting the DAO.

The plan also includes creating a new foundation to hold Aave’s trademarks and intellectual property. This entity would manage the brand on behalf of the community, rather than leaving those assets under company control.

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At the same time, Aave Labs is asking for long-term financial support from the DAO. The proposal requests $25 million in stablecoins, 75,000 Aave (AAVE) tokens, and additional grants tied to specific products. 

A more open budget system would allocate these funds to operations, marketing, and development. Aave founder Stani Kulechov said the framework is designed to establish a “token-first” relationship between the DAO and its primary developer. 

Community reaction and open questions

Aave community’s response to the proposal has been mixed. Since protocol success directly benefits AAVE holders, some token holders view it as a significant step toward greater alignment. They argue that the model’s value returns are more obvious and that it resembles a shareholder structure in traditional finance. 

Some are more cautious. Critics question whether Aave Labs is actually giving up economic power and point to the size of the funding request. Marc Zeller and other commentators have raised concerns that the upfront payments could offset much of the revenue being redirected.

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The dispute comes after months of conflict over control and ownership. After Aave Labs re-directed interface fees away from the DAO in late 2025, they faced major criticism. Following that incident, token holders attempted in vain to take over the company’s intellectual property. 

Since that time, Aave Labs has scaled back several side projects and refocused on core lending products. The “Aave Will Win” proposal appears to be part of that reset.

The framework is still only a preliminary signal check for the time being. It would proceed to the official voting stages if there is substantial community support. Future governance decisions and the DAO’s ability to effectively manage a multibillion-dollar brand will determine whether the model proves sustainable.

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Crypto World

Bitcoin Liquidity Analysis Eyes $65,000 Support Retest to Come

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Bitcoin Liquidity Analysis Eyes $65,000 Support Retest to Come

Bitcoin (BTC) has “annihilated” short sellers with its latest trip to monthly highs as crypto liquidations pass $500 million.

Key points:

  • Bitcoin bears suffer as BTC price action hits $74,000.

  • Analysis sees more liquidations to come, including longs, with possible market dips below $70,000 to test support.

  • Bitcoin inflows begin to copy a broad ETF rebound in place through 2026.

BTC price analysis: “Bulls just took back control”

New analysis from CryptoReviewing, the pseudonymous cofounder of trading community Wealth Capital, says that the “entire market scenario” for Bitcoin has changed.

The past few days have seen BTC price swings take out both long and short positions worth hundreds of millions of dollars, but the trip to $74,000 ultimately cost bears more.

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“Bears just got annihilated,” CryptoReviewing summarized.

Accompanying exchange order-book data from monitoring resource CoinGlass shows price slicing through walls of liquidations.

Wednesday’s liquidation total for Bitcoin and altcoins neared $600 million, with more shorts erased than on any day since Feb. 25.

Crypto liquidation history (screenshot). Source: CoinGlass

“And now the entire market scenario has changed… At $73,000 – $75,000 we have a large liquidity zone which could be swept, potentially leading to even higher levels,” CryptoReviewing continued. 

“However, $65,000 – $71,000 below has roughly 4x more liquidity built up, making it the ‘more likely’ zone from a liquidity perspective to be visited next. Bulls just took back control.”

BTC liquidation heatmap (screenshot). Source: CoinGlass

Such a support test is also on the radar for Keith Alan, cofounder of trading platform Material Indicators.

As part of a new market analysis published on Wednesday, Alan argued that a consolidation phase should form part of a reliable trend change.

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“A support test, sooner than later, would be healthy, but I’m not sure that the market is going to make it that easy on us. However this develops, IMO, the longer it takes to grind up, the more durable the rally will likely be,” he wrote.

Alan nonetheless warned that long-term bearish signals remained in place, expecting Bitcoin’s “next leg down” to result from the current setup.

Bitcoin ETFs in focus amid “historic acceleration”

As Cointelegraph reported, price upside has accompanied renewed interest in Bitcoin from institutional sources.

Related: ‘This is not World War III:’ Five things to know in Bitcoin this week

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The US spot Bitcoin exchange-traded funds (ETFs) saw net inflows of nearly $500 million on Wednesday.

Data from UK-based investment company Farside Investors confirms that inflows have been net positive on all but one trading day since Feb. 24. Even then, outflows were modest at just $27.5 million.

So far in March, the ETFs have taken in over $1.1 billion in capital.

US spot Bitcoin ETF netflows (screenshot). Source: Farside Investors

Commenting, trading resource The Kobeissi Letter noted that ETF interest has broadly spiked this year, making the US Bitcoin and Ethereum offerings relative laggards after months of outflows.

“Investors are pouring money into US funds at a record pace: US-listed ETFs have pulled in +$380 billion so far in 2026, on track for the best year on record. This marks a +80% increase compared to the first two months of 2025,” it revealed on X.

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Kobeissi described the US ETF industry as “experiencing a historic acceleration in investor demand.”

US ETF flow data. Source: The Kobeissi Letter/X