The Bold Aave Plan to Claim 100% of Protocol Revenue for the AAVE Token: Is It Genius or Madness?

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Aave governance, in its infinite wisdom, has taken a daring step forward to funnel 100% of its protocol revenue straight into the AAVE token, as the proposal stumbles into the ARFC review phase.

Aave, ever the innovator, has passed a proposal with all the subtlety of a marching band, moving forward with plans to redirect 100% of its product revenue to the AAVE token after it passed the Temperature Check-think of it as the warm-up act before the real voting begins.

Founder Stani Kulechov, with all the confidence of someone who just watched their proposal sail through, confirmed the news on March 1, 2026. He didn’t mince words: the “Aave Will Win” proposal had triumphed in the vote. Well, that’s one way to keep up the suspense.

The plan, if we dare call it that, signals a sweeping shift toward a token-centric model, with structural revisions and a whole lot of paperwork expected before the proposal moves into the ARFC phase. It’s like shifting gears while still waiting for the car to be delivered.

Revenue Redirection Plan Gains Support: But Will It Really Work?

The approved framework, full of lofty promises, outlines how revenue will flow to the Aave DAO. If it works, the DAO will see a flood of funds. If not, well, the joke’s on us.

Under the new plan, 100% of the gross revenue from Aave products will be funneled into the treasury, including fees from current and future offerings. That’s right-every penny.

Aave founder Stani Kulechov announced that the “Aave Will Win” proposal has passed the Temp Check stage, pushing Aave Labs toward a fully token-centric model that would direct 100% of product revenue to the AAVE token. The proposal now moves to the next phase, where structural…

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The proposal covers swap fees from aave.com and even includes the upcoming mobile app. Oh, and don’t forget the Aave Card program. Nothing says progress like a few extra fees to make the money flow.

Institutional services like Aave Pro are also part of the package, ensuring that no corner of the ecosystem is left untouched. The Aave Horizon project, with its focus on real-world assets, is in on the action too.

Potential revenue from an AAVE exchange-traded product? You bet. Everything’s on the table, with all roads leading back to the DAO under the proposal.

It’s all designed to reduce “value leakage” between Aave Labs and the DAO. Ah yes, “value leakage”-because nothing says professional financial strategy like a catchy term for what essentially sounds like a plumbing problem.

The changes, if approved by later governance stages, would come into effect ahead of the planned V4 upgrade. If this all works out, expect a lot of “Aave will win” t-shirts, as promised by Kulechov.

Funding Request and Structural Changes: Let’s Talk Money

Now, in exchange for redirecting all that sweet revenue, Aave Labs has made a rather bold request from the DAO. They’re asking for a cool $25 million in stablecoins, plus 75,000 AAVE tokens-which were valued at around $8.48 million in late February. With the stablecoins thrown in, the total package is a whopping $51 million. Quite the asking price, isn’t it?

But wait-there’s more! Targeted growth grants are also on the wishlist. Some community members, ever so kind, have raised eyebrows at the size of this request. But hey, when you’re asking for millions, it’s not about what you need; it’s about what you can get away with.

Marc Zeller of the Aave Chan Initiative, ever the watchdog, raised concerns about the amount, comparing it to prior grants approved by the DAO. Spoiler alert: he wasn’t impressed.

The proposal also includes the creation of an Aave Foundation, which will hold trademarks and intellectual property on behalf of the DAO. Because, as we all know, nothing secures a brand like a shiny new foundation to manage it.

The structure is designed to “clarify” brand ownership and governance rights. Translation: Let’s make sure no one else is trying to use the Aave logo on their T-shirts.

Related Reading: Aave Labs Shuts Down Avara Brand and Refocuses on Core Lending Protocol

Governance Path Toward ARFC Stage: What Happens Next?

The Temperature Check, for those not in the know, is just an early vote to get a feel for the community’s mood. Think of it as a show of hands before the serious business starts. The passing of this stage means the proposal can move forward to the ARFC, or Aave Request for Comments, phase. You know, the stage where we all get to voice our opinions-because who doesn’t love a good discussion?

At this stage, structural and technical changes can be introduced, and the community feedback will shape the final draft. Let’s just hope the feedback isn’t too “constructive.”

Aave Labs, in an earlier fit of foresight, suggested transferring all protocol revenue to the DAO in exchange for operating funds. This idea laid the groundwork for the current proposal. So, credit where credit’s due-this isn’t their first time playing the “let’s restructure the whole thing” game.

The new plan refines those earlier ideas into something that almost resembles a formal structure. Almost.

As Aave reports over $1 trillion in cumulative loan volume, it remains one of the largest decentralized lending platforms. With such numbers, you’d think they’d already have a spaceship for testing future loans.

The outcome of the ARFC stage will determine whether the revenue shift proceeds to a final on-chain vote. If that happens, we’ll see just how serious the community is about embracing the token-centric future Kulechov envisions. His mantra remains: “Aave will win.” But, as always, the real question is-how?

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2026-03-01 20:35