Aave V4 Upgrade Tied to Major Revenue Shift

• Aave Labs proposes sending 100% of revenue from Aave-branded products directly to the DAO treasury under its new V4 framework.
• The plan includes creating a separate foundation to manage Aave’s trademarks, domains, and branding assets.
• Aave V4 is set to become core architecture, with a proposed 8–12 month migration pending DAO approval.

$AAVE Holders Eye Labs’ Bold Proposal as v4 Migration Looms. Aave Labs has submitted a governance proposal that would direct 100% of product revenue to the Aave DAO and introduce structural changes tied to the upcoming V4 upgrade.

The plan, titled “Aave Will Win,” sets out a new framework for funding, branding, and protocol development.

100% Revenue to the Aave DAO

The proposal states that all revenue generated from Aave-branded products would flow to the DAO treasury. This includes income from user interfaces, institutional tools, and other services built by Aave Labs. The change would formalize a token-centric model.

Stani Kulechov, founder of Aave Labs, said in a statement that the framework “formalizes Aave Labs’ role as a long-term contributor to the Aave DAO under a token-centric model, with 100% of product revenue directed to the DAO.” The DAO would then decide how funds are allocated.

Instead of retaining revenue, Aave Labs would request an annual budget from the DAO. The proposal includes a request for stablecoins and AAVE tokens to support development and go-to-market efforts. Token holders will vote on whether to approve the structure.

Foundation and Brand Control Debate

The framework also calls for the creation of a separate foundation. This entity would manage Aave’s branding and intellectual property. Decentralized organizations cannot directly hold trademarks or domains.

The proposal arrives after internal debate over brand control. Some community members previously questioned whether Aave Labs should manage trademarks and digital assets. The new foundation structure aims to address that concern.

Governance transparency has also been discussed within the community. A recent proposal seeking disclosure of voting addresses did not pass. Under the current model, voting power is based on token holdings. Control over the foundation may depend on token ownership levels.

Aave V4 Migration and Timeline

Aave V4 stands at the center of the proposal. The upgrade is designed to make it easier to launch new markets and products. It seeks to allow expansion without repeated core system changes.

According to Ignas @DefiIgnas, The migration from V3 to V4 is proposed within eight to twelve months. Some community participants have noted that users may prefer extended stress testing before large capital moves. Final timelines would depend on governance approval.

Additional votes are expected if the framework passes. These will address activation details and funding schedules. The proposal reflects an effort to align development incentives with DAO governance as Aave prepares for its next version.