On February 12, 2026, Aave Labs submitted a temature check proposal to redirect 100% of Aave protocol revenue, including swap fees from v3 and upcoming v4, aave.com frontend earnings, Aave Card, and AAVE ETF to the Aave DAO treasury, The Block. In exchange, Aave Labs requests $25M in stablecoins ($5M upfront, $20M streamed), 75,000 AAVE unlocked monthly over two years, and $17.5M in grants for Aave App, Aave Pro, Aave Card, and Aave Kit. The plan also transfers trademarks and IP to a new Aave Foundation, recentering token holders as primary beneficiaries.
The proposal addresses months of tension over Aave ownership, sparked when Aave Labs redirected swap fees from aave.com to a private wallet in December 2025. A failed poison pill takeover bid aimed to seize Labs’ IP and assets. Marc Zeller, Aave Chan Initiative founder, criticized the ask as a $50M extraction disguised as benevolence, accusing Labs of bypassing governance. Stani Kulechov’s restructuring, sunsetting Lens and Family wallet, focuses on DeFi, with v4’s hub-and-spoke model unlocking new revenue.
Aave v3 generates over $100M annualized revenue, with v4 expected to expand via customizable spokes for new markets, $100M+ potential. Labs claims historical self-funding subsidized DAO activities, justifying the $42.5M+ request for product engineering, compliance, and marketing. Annual budgets require DAO votes, ensuring oversight. Critics like Zeller argue it imposes outcomes without dialogue. Aave’s $2.5B TVL and DeFi leadership could benefit, but funding risks dilution if AAVE unlocks accelerate, DefiLlama.
The temature check tests DAO support for v4 activation and v3 winddown 8–12 months post-launch. Approval could accelerate institutional adoption amid SEC delays on XRP ETFs and Illinois’s strict rules. Rejection may escalate conflict. Investors should monitor Aave governance on Snapshot and TVL on DefiLlama. Dollar-cost average into AAVE with stop-losses below $150, or diversify into USDC, TradingView. Follow @TheBlock__ on X for updates. Aave’s DAO-centric evolution could redefine DeFi governance, but balancing Labs funding and token holder value is key in 2026.
