Aave Labs’ Revenue-Sharing Proposal Triggers Governance Debate Within AAVE Community

TheNewsCryptoPublished on 2026-01-03Last updated on 2026-01-03

Abstract

Aave Labs has proposed sharing revenue from its new business ventures with AAVE token holders, sparking a governance debate within the community. Critics, including prominent members, argue that Aave Labs retains excessive control, citing past decisions that favored the company over the decentralized autonomous organization (DAO). They demand full transparency and control over brand assets, ownership, and revenue flows, emphasizing that token holders bear governance risks and should be rewarded accordingly. The proposal is part of Aave's broader strategy to expand beyond crypto lending into real-world assets and other innovations, with the upcoming V4 upgrade enabling modular architecture and safer development. Aave Labs contends that a company-led structure ensures faster execution and competitiveness, though it offers revenue sharing as a compromise. The announcement positively impacted AAVE's price, which rose significantly following the news.

Aave Labs is considering a proposal to share revenue with AAVE token holders generated from new businesses built outside the core Aave protocol. While Aave Labs is putting forward the idea, the Aave DAO remains the governing body of the protocol.

However, some AAVE holders are unhappy, arguing that Aave Labs holds more control than the DAO. Past governance votes rejected giving the DAO full ownership of Aave’s brand assets, and fees from CoW Swap integrations were reportedly routed to private Aave Labs wallets, not the DAO. Community members such as Marc Zeller and BrazenSeeker have raised concerns, warning that these moves could lead to quiet privatization of parts of the Aave ecosystem.

Aave’s Expansion Plans Spark Governance and Revenue Debate

The Critics inside the AAVE community are that some of the DAO members and long-term token holders are asking for 100% control and clarity over the money and power flow in the ecosystem. They demand this 100% control because the AAVE token holders own and govern the protocol, and they say that the Revenue should reward those who take the governance risk. Instead of asking for the money, they first ask for clarity and rules on Brand usage, Asset Ownership, and Revenue flow.

AAVE mainly focuses on Crypto lending, and the AAVE team believes that AAVE can grow bigger. The AAVE wants to expand into real-world assets and attract more users and developers. This creates AAVE as a new revenue source. The AAVE V4 is the major reason for this plan because it introduces the modular architecture and allows use cases without risking the Core protocol. It also supports RWA-backed loans and custodian-based lending, which makes it easier for the developer to innovate safely.

On the other hand, the AAVE labs clearly say that AAVE needs to grow beyond the Crypto lending and not all the revenue comes directly from the Protocol, and they are proposing to share some of these revenues with the AAVE Holders through governance as a compromise. The AAVE Labs believes that 100% DAO control over everything would slow the execution, and the company-led structure helps move faster and compete.

This news impacted the price of AAVE to move upwards as the community got the potential benefits that could help the holders. AAVE is currently trading at the price of $161.90 with 6.60% increase in 24 hours and an 8.48% increase in the past 5 days.

Highlighted Crypto News:

‌BlackRock Clients Add 3,199 BTC in Fresh Institutional Buying

AI Agent Completely Transforms Web3 Gaming: From the Rugpull Bakery Bot Controversy to the New 2026 Agent Paradigm

This article explores how the AI Agent paradigm is fundamentally transforming Web3 gaming, moving from a disruptive force to a core, legitimized element. It begins with the controversy in the competitive baking game Rugpull Bakery, where automated scripts caused fairness issues. Instead of banning them, the developers integrated AI Agents into the official gameplay by providing technical documentation (skill.md, agent.json), marking a shift towards "Agentic Gaming." The piece outlines three primary implementation models for AI Agents in Web3 games by 2026: 1. **Autonomous Competitors & Economic Entities:** AI Agents act as independent players with unique strategies. Examples include TEN Protocol's poker agents, AI Arena's trainable NFT fighters, and Satoshi Strike Force's "Digital Athletes" trained on player data. The Somnia blockchain is highlighted as a dedicated "Agentic L1" infrastructure supporting this model at scale. 2. **Modular Infrastructure & Programmable Environments:** This model, exemplified by EVE Frontier, allows AI Agents to program game world logic itself. Using "Smart Assemblies" (e.g., Smart Turrets, Smart Gates), Agents can modify shared economic and physical rules on-chain, creating dynamic, player/AI-built worlds. The ERC-8183 standard further enables these automated entities to hire other AI services for complex tasks. 3. **Hybrid Companions & Dynamic Adaptation:** Here, AI serves as a collaborative partner. In Parallel Colony, highly autonomous AI Avatars work alongside human players who provide high-level guidance. Illuvium plans to use AI to make NPCs dynamic and responsive, creating personalized, emergent narratives for each player. The conclusion posits that Web3 gaming has reached a "post-human" inflection point. Blockchains' transparency and programmability, combined with new standards and infrastructure like Somnia, make integrating and governing AI Agents not just viable but essential. The future lies in a symbiotic digital order where players transition from manual laborers to commanders and partners of algorithmic intelligence.

marsbit3m ago

AI Agent Completely Transforms Web3 Gaming: From the Rugpull Bakery Bot Controversy to the New 2026 Agent Paradigm

marsbit3m ago

Saylor Bought 1,550 BTC, But This Might Be Strategy's Worst Trade Recently

Saylor purchased 1,550 BTC, but this may be one of MicroStrategy's worst recent trades for its MSTR shareholders. The article explains that for MSTR to increase its Bitcoin-per-share (BPS) metric, it must issue new shares at an mNAV (market cap to net asset value) ratio above a "breakeven" level, calculated here as 1.30. In this transaction, MSTR raised $181 million via an ATM offering and used only $101.3 million to buy Bitcoin, with the rest reportedly added to its dollar reserves. Crucially, the author argues the shares were likely sold below the 1.30 mNAV threshold. This combination—selling below breakeven mNAV and not deploying all proceeds into Bitcoin—resulted in a slight dilution of BPS, estimated at a 0.19% decrease. The trade is framed as a sacrifice of MSTR shareholder value (BPS) to extend the dollar reserve runway for its Sustainable Treasury Reserve Coin (STRC) subsidiary from 6.3 to 7 months. The author concludes that Strategy is gambling that this move will improve market sentiment for STRC and MSTR, allowing future value-accretive fundraising. If it fails, the company may face the difficult choice of further diluting MSTR or delaying STRC dividends.

marsbit7m ago

Saylor Bought 1,550 BTC, But This Might Be Strategy's Worst Trade Recently

marsbit7m ago

Saylor's Purchase of 1550 Bitcoin Is a Bad Trade

**Title: Saylor's Purchase of 1,550 Bitcoins Was a Bad Trade** The article critically analyzes Strategy's recent move of selling 32 bitcoins followed by a much larger purchase of 1,550 bitcoins. While appearing bullish, the author argues this trade is detrimental to MSTR shareholders. The core argument revolves around the concept of "breakeven modified Net Asset Value (mNAV)," a key metric for Strategy. To increase Bitcoin per share (BPS) for MSTR holders, Strategy must issue new shares at a premium high enough that the funds raised can buy more bitcoin than the bitcoin backing each existing share. Currently, this breakeven mNAV is estimated at 1.30. The recent trade failed on two counts: 1. The shares for the $181 million raise were issued at an mNAV *below* the 1.30 breakeven point. Selling "cheap" shares to buy bitcoin actually *reduces* BPS. 2. Only $101.3 million of the raised funds were used to buy bitcoin; the rest went to boost the company's dollar reserves. The breakeven mNAV calculation assumes *100%* of proceeds are used for bitcoin purchases. Diverting funds, even if mNAV were high, dilutes BPS. The result is an estimated 0.19% decrease in Bitcoin per share for MSTR holders. In exchange, Strategy merely extended its operational runway for its dollar reserves from ~6.3 months to 7 months. The author interprets this as Strategy prioritizing the survival and development of its STRC business over its stated core goal of increasing MSTR's BPS. This constitutes a gamble: if sacrificing MSTR value leads to improved market sentiment and a recovery in STRC's price (and thus mNAV), the whole system could work. If not, Strategy may be forced into a cycle of further diluting MSTR to stay afloat, potentially leading to deferred STRC dividends or corporate decline. The article concludes with a hope for price recovery for Bitcoin, MSTR, and STRC.

Foresight News14m ago

Saylor's Purchase of 1550 Bitcoin Is a Bad Trade

Foresight News14m ago

The AI Bear Market Lasting Two Days Is Over; Why Did Funds Buy Back Storage Stocks First?

After a severe two-day selloff in early June that erased over $1 trillion from U.S. chip stock market value, capital is flowing back first to the memory sector. The correction was not driven by a collapse in AI demand but rather a market reassessment of high expectations. Stocks like Broadcom faced selling pressure despite strong AI revenue guidance, signaling a shift in focus from who has an "AI story" to who can most rapidly translate AI demand into verifiable profits and earnings per share (EPS). Memory companies, such as Micron and SK Hynix, are leading the recovery because their EPS growth is more immediately verifiable. The AI server boom directly increases demand for high-bandwidth memory (HBM) and high-capacity server DRAM, tightening supply and driving up contract prices for conventional DRAM and NAND Flash. This price increase, coupled with a shift to higher-margin products, flows directly into near-term revenue and profitability, as evidenced in recent earnings reports. In contrast, other AI semiconductor segments like GPUs, ASICs, and optical modules, while central to the long-term AI infrastructure story, face longer and less certain paths to EPS validation. Their growth depends more on future product cycles, customer adoption timelines, and capital expenditure plans. The rebound in memory stocks highlights a market preference for assets with shorter, more transparent EPS conversion cycles following the recent de-risking phase. However, this does not negate the potential of other AI hardware segments should they provide clearer near-term order visibility. The episode has raised the validation bar for all AI-related investments.

marsbit14m ago

The AI Bear Market Lasting Two Days Is Over; Why Did Funds Buy Back Storage Stocks First?

marsbit14m ago

Google's $85 Billion Secondary Offering Breaks Historical Record, Buffett Invests $10 Billion in AI Infrastructure

Alphabet (Google) has completed a record-breaking $847.5 billion equity offering, the largest in history. The funds are earmarked for AI infrastructure, with Alphabet's 2026 capital expenditure guidance raised to $180-190 billion. The complex financing structure included public offerings, convertible notes, and a $100 billion private placement to Warren Buffett's Berkshire Hathaway, seen as a major vote of confidence from value investors. Alphabet's move comes amid strong Q1 2026 results, with revenue hitting $110 billion and cloud backlog surpassing $460 billion. This offering signals the start of a massive AI funding supercycle. SpaceX is set for a $750 billion IPO, while AI giants Anthropic and OpenAI have also confidentially filed for public listings targeting trillion-dollar valuations. Analysts estimate total AI-related equity issuance in 2026 could reach $400 billion, dwarfing previous records. The flood of supply raises questions about market absorption, with historical data showing significant post-IPO pullbacks. Some advise investors seeking AI exposure to consider established players like Alphabet, which offers growth potential with comparatively lower risk than pure-play AI startups.

marsbit20m ago

Google's $85 Billion Secondary Offering Breaks Historical Record, Buffett Invests $10 Billion in AI Infrastructure

marsbit20m ago

Trading

Spot

Futures

Hot Articles

How to Buy AAVE

Welcome to HTX.com! We've made purchasing Aave Protocol (AAVE) simple and convenient. Follow our step-by-step guide to embark on your crypto journey.Step 1: Create Your HTX AccountUse your email or phone number to sign up for a free account on HTX. Experience a hassle-free registration journey and unlock all features.Get My AccountStep 2: Go to Buy Crypto and Choose Your Payment MethodCredit/Debit Card: Use your Visa or Mastercard to buy Aave Protocol (AAVE) instantly.Balance: Use funds from your HTX account balance to trade seamlessly.Third Parties: We've added popular payment methods such as Google Pay and Apple Pay to enhance convenience.P2P: Trade directly with other users on HTX.Over-the-Counter (OTC): We offer tailor-made services and competitive exchange rates for traders.Step 3: Store Your Aave Protocol (AAVE)After purchasing your Aave Protocol (AAVE), store it in your HTX account. Alternatively, you can send it elsewhere via blockchain transfer or use it to trade other cryptocurrencies.Step 4: Trade Aave Protocol (AAVE)Easily trade Aave Protocol (AAVE) on HTX's spot market. Simply access your account, select your trading pair, execute your trades, and monitor in real-time. We offer a user-friendly experience for both beginners and seasoned traders.

5.4k Total ViewsPublished 2024.03.29Updated 2026.06.02

Discussions

Welcome to the HTX Community. Here, you can stay informed about the latest platform developments and gain access to professional market insights. Users' opinions on the price of AAVE (AAVE) are presented below.