Aave launches "Token Center" model: 100% of product revenue goes to DAO, applying for $50 million in funding support

AAVE-0.14%

On February 14, news emerged that the governance battle between Aave Labs and Aave DAO has intensified again. Aave Labs announced a “Token Center” framework, pledging that all revenue generated from its Aave-branded products will flow 100% to the DAO to strengthen the ecosystem’s long-term value capture capabilities. The involved products include Aave.com, mobile applications, the Aave Card, and the tokenization platform Aave Horizon.

Stani Kulechov, founder and CEO of Aave Labs, stated that this model positions the company as a long-term service provider for the DAO, laying the foundation for Aave to seize emerging growth opportunities amid the integration of DeFi and traditional finance. In exchange, Aave Labs is requesting approximately $50 million in support from the DAO, including 75,000 AAVE tokens, for ongoing development of related products, and has proposed establishing a foundation to manage Aave brand affairs.

However, reactions within the DAO have been mixed. Some members believe that the proposal is favorable to token holders in form but express concerns over the concentration of funding requests and governance power. Active member Marc Zeller pointed out that Aave Labs submitted the proposal without sufficient consultation and called for an audit of its revenue sources to verify the feasibility of the “100% revenue” pledge.

In fact, tensions between the two parties have existed for some time. At the end of 2025, Aave Labs was accused of misappropriating income that should have gone to the DAO, causing market panic and a temporary drop in AAVE price from $200 to around $140. Although a “ceasefire” was reached in January this year, governance structure and brand control remain core points of contention.

Following the announcement, the price of AAVE rose approximately 7% in the short term, indicating that the market still holds expectations for the “income flowing back to the DAO” narrative. However, if audits and governance disagreements cannot be properly resolved, risks remain. For investors, this battle over revenue distribution and control could become a key factor influencing Aave’s medium- to long-term valuation trajectory.

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