- Revenue Dispute: Delegates claim CowSwap integration redirected swap fees away from the Aave DAO.
- Governance Backlash: Tokenholders warn alleged revenue losses could exceed $10 million annually.
- Labs Defense: Aave Labs cites long-term innovation and DAO value creation to counter criticism.
Tension has risen inside the Aave community over control of protocol revenue. Delegates and service providers now clash over ownership rights. A recent integration changed how swap fees flow. That shift triggered sharp reactions from tokenholders. Many now question whether DAO interests remain protected. Accusations of lost revenue dominate governance discussions. Estimates suggest losses could reach eight figures annually.
Who Controls Aave’s Revenue Streams
Aave DAO historically paid contractors directly for development work. That funding covered interfaces, branding, and product features. Governance participants argue this payment structure grants full ownership to the DAO. Fees generated through those features should flow back to the treasury. This understanding remained widely accepted for years. The CowSwap integration altered that arrangement. Swap fees no longer reach the DAO treasury.
Delegates quickly noticed the change and raised objections. Previous integrations, including ParaSwap, shared revenue with the DAO. The new setup redirected fees elsewhere. Delegates described the outcome as sidelining tokenholders. One delegate estimated annual revenue losses exceeding $10 million. That figure sparked heated debate across governance forums.
Earlier this year, Aave Labs proposed a tokenization product called Horizon. The proposal included a separate token. The DAO rejected the plan after intense debate. That decision added context to current tensions. Some delegates view recent revenue changes as part of a broader pattern. Marc Zeller, founder of the Aave-Chan Initiative, voiced strong concerns. Zeller described the revenue shift as privatization.
Aave Labs Responds to Growing Criticism
Aave Labs pushed back against accusations. Founder Stani Kulechov emphasized long-term contributions. According to Kulechov, Aave Labs has built core protocol innovations for over eight years. Those efforts include Aave V4 development and the GHO stablecoin. Revenue from these primitives continues flowing to the DAO. The DAO also manages a token buyback program. That mechanism aims to return value to tokenholders.
Supporters argue this proves alignment between Labs and the DAO. They stress that innovation requires flexibility and resources. From this view, service providers deserve room to operate. On-chain data adds another layer. Blockworks Research reported over $15 billion in net deposit inflows during Q3 2025. Network usage remains strong despite governance friction. Market reaction also stayed muted.
AAVE traded near $200 for the past week. The debate now centers on trust and structure. Delegates seek clarity on revenue rights. Service providers seek autonomy for continued innovation. Both sides claim alignment with long-term protocol health. Governance discussions will likely intensify. Aave stands at a crossroads. Decisions made now could shape future DAO dynamics. Clear frameworks may help prevent similar disputes. Without resolution, tensions could deepen.
