Aave Labs responds to community feedback
Aave Labs announced that it is considering mechanisms to share part of the revenue it generates outside of the core Aave protocol with AAVE token holders. The decision follows recent discussions within the community around how value created by the broader Aave ecosystem should accrue to long-term participants.
The team said a formal proposal is in preparation and will outline the specific structures under consideration.
What “off-protocol revenue” means
Off-protocol revenue refers to income generated by Aave Labs from activities that are not directly embedded in the on-chain lending markets, such as enterprise services, partnerships, or other business initiatives built around the Aave brand and technology.
Sharing a portion of this revenue could mark a shift in how value flows between Aave Labs and the Aave DAO.
Governance and risk safeguards
According to the statement, the upcoming proposal will include governance frameworks and risk-management measures designed to align with Aave’s long-term objectives while protecting both the DAO and AAVE token holders.
This suggests that any revenue-sharing model will be implemented with constraints intended to preserve protocol sustainability and avoid exposing the DAO to unintended liabilities.
BTCUSA outlook
If Aave Labs formalizes a structure to distribute off-protocol revenue, it could redefine how DeFi projects approach value capture beyond pure on-chain fees.
The move would also place Aave among a growing number of protocols experimenting with hybrid business models that bridge traditional company revenue with decentralized token economics.
