Aave Labs, the development entity behind the Aave protocol, has announced a new revenue sharing initiative aimed at AAVE token holders. This decision emerges in the wake of ongoing governance disputes between Aave Labs and the Aave decentralized autonomous organization (DAO) regarding profit distribution and control over the protocol”s future.
Stani Kulechov, founder of Aave, detailed the proposal in a blog post released on Friday. He emphasized that the company is committed to sharing revenue generated from external projects with AAVE token holders. “Alignment is important for us and for AAVE holders,” Kulechov stated, promising a formal proposal that will outline the specifics of the revenue-sharing structure.
The conflict began when a community member raised concerns about Aave Labs redirecting frontend fees away from the Aave DAO, which primarily oversees the protocol”s operations. Aave Labs initially developed the protocol, but the DAO has taken charge of its maintenance. A proposal put forward in December sought to transfer all brand-related assets and copyrights into a DAO-controlled entity, but the details on Aave Labs” ongoing role remain ambiguous.
As discussions continue, there is uncertainty surrounding the ability of the community to match the innovation and operational effectiveness demonstrated by Aave Labs. This situation draws parallels to other platforms, such as Cardano, which have transitioned towards community ownership. In some cases, like Kaspa, a shift from centralized leadership to community governance has negatively impacted token valuation.
Looking ahead, Kulechov believes that both factions must reach a consensus on Aave”s strategic direction. He expressed a desire for the protocol to expand beyond the cryptocurrency space, exploring opportunities in real-world assets, consumer lending, and institutional loans. “We believe the most effective path forward is to allow opinionated teams to build products independently on top of the permissionless Aave Protocol, while the protocol itself captures upside through increased usage and revenue,” Kulechov explained.
Additionally, Kulechov acknowledged the need to address branding issues within the ecosystem. Some community members advocate for Aave Labs to transfer its intellectual property to the DAO, a move that could further clarify control and revenue-sharing mechanisms moving forward.
