Aave Labs | Crypto

Competing reports outline contrasting views on protocol revenue, development and funding accountability. A governance dispute inside the Aave ecosystem intensified after two detailed reports offered contrasting interpretations of the protocol’s past funding and contributions ahead of a vote on a proposed $50 million package for Aave Labs.  Aave Chan Initiative (ACI) founder Marc Zeller on Wednesday published what he called a transparency report reviewing Aave Labs’ historical funding and applied a return-on-investment framework to past DAO grants. Hours earlier, Aave Labs released its own contributions report outlining its role in building the protocol since 2017. The dispute centers on the “Aave Will Win” framework, a proposal asking tokenholders to approve funding worth up to $42.5 million in stablecoins and 75,000 AAVE (AAVE) tokens. In return, Aave Labs would route 100% of revenue from Aave-branded products to the Aave DAO treasury under a DAO-funded operating model, according to the proposal and related ...

Some community members questioned the size of the $50 million package and warned that the proposed AAVE token grant could concentrate voting power. Aave Labs has asked tokenholders to approve a funding package worth about $50 million in exchange for redirecting all revenue from Aave-branded products to the Aave DAO treasury. The proposal includes up to $42.5 million in stablecoins — $25 million as a primary grant and $17.5 million tied to product milestones. It also includes 75,000 Aave (AAVE) tokens, worth about $8 million at the time of writing. The stablecoin grants, if approved, will be streamed over time, and milestone payments will be released upon product launches.  In return, Aave Labs would route 100% of product-level revenue to the DAO. That includes fees generated by aave.com, the planned Aave App and Aave Card, Aave Pro, Aave Kit and Aave Horizon. The framework also asks tokenholders to ratify Aave V4 as the protocol’s long-term technical foundation and outlines plans to create a foundation to hol...