Aave Labs Proposes “Aave Will Win” Plan to Send 100% of Product Revenue to DAO

Governance Proposal Introduces Full Revenue Reroute, Annual DAO-Funded Budget Model, and Separate Foundation for Brand Control

TL;DR

• Aave Labs introduced the “Aave Will Win” proposal on Feb. 12, 2026 at 19:12 UTC to send 100% of product revenue to the DAO treasury.
• The framework links the shift to Aave V4 with a migration timeline of eight to twelve months and follow-up governance votes.
• The plan includes an annual budget request in stablecoins and AAVE tokens and the creation of a separate foundation to manage trademarks and domains.

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Aave Labs has submitted a governance proposal titled “Aave Will Win” that would route 100% of revenue from Aave-branded products directly to the Aave DAO treasury. The initiative was published on Feb. 12, 2026 at 19:12 UTC and described as arriving “amid discord within the Aave community over control of the protocol’s brand and key assets.” The proposal restructures how value accrues within the ecosystem by eliminating revenue retention at the Labs level and redirecting all inflows to the DAO.

Under the proposed structure, Aave Labs would no longer retain protocol revenue and would instead request an annual budget from the DAO. The funding request includes stablecoins and AAVE tokens to support development and go-to-market initiatives. The framework states that token holders will vote on whether to approve the model, with additional governance votes expected to address activation mechanics and funding schedules if the plan advances.

A governance delegate identified as BrazenSeeker summarized the mechanism in a forum comment cited in coverage, stating, “100% of all revenue going to aave dao.” The shift is presented as a move to align token holders and equity stakeholders while positioning Aave V4 as the core architectural framework of the protocol.

Aave V4 is central to the proposal and carries a proposed migration window of eight to twelve months from V3, subject to DAO approval. A version timestamped Feb. 13, 2026 at 12:30:14 UTC detailed the transition plan and noted that the timeline could extend depending on governance decisions. Commentary attributed to Ignas (@DefiIgnas) referenced the same eight-to-twelve month window, while adding that some participants favor extended stress testing before significant capital moves.

The framework also introduces a separate foundation tasked with managing Aave’s trademarks, domains, and branding assets. The structure is described as necessary because decentralized organizations cannot directly hold intellectual property. Debate over brand control preceded the proposal, and governance transparency has been contested, including a recent proposal seeking disclosure of voting addresses that did not pass. Voting power continues to be determined by token holdings.

Discussion intensified on Feb. 13, 2026 as community members debated whether the funding structure is “extractive.” A follow-up post praised the DAO's "victory" but noted it involves "four proposals in a trenchcoat." Vocal DAO delegate Marc Zeller cautioned that revenue calculations are solely at Aave Labs' discretion, with no independent audit or cap, and no DAO approval needed. He highlighted that the $50 million in tokens requested constitutes 31.5% of the entire treasury for a single provider in one vote. Additionally, the proposed 75,000 AAVE tokens would further enhance Labs' influence over DAO voting. 

The latest iteration was described as “a step in the right direction after two months of debate” while noting, “But the sums requested are considerable.” The exchange centers on the scale of the annual budget request and the shift toward a DAO-funded operational model for Aave Labs.

It came as Grayscale filed to convert its closed-ended AAVE trust into an exchange-traded fund (ETF), aiming to list on NYSE Arca. In December, Bitwise submitted paperwork for 11 AAVE ETF considerations, possibly ahead of Grayscale. The proposed Grayscale AAVE ETF would charge a 2.5% sponsor fee on net asset value, payable in AAVE, with Coinbase serving as custodian and prime broker. Grayscale successfully converted its Bitcoin Trust into an ETF, paving the way for this move.

This article has been refined and enhanced by ChatGPT.