#CryptoMarketPrediction

Aave Price Rises on Revenue Sharing Plans with Token Holders

Aave is preparing for a major governance vote. The platform will consider the option of sharing a portion of its off-protocol revenue with AAVE token holders and will present a formal proposal to the community.

This announcement, made on January 2, 2025, immediately boosted market sentiment. AAVE gained more than 10% in value during the day as traders reacted positively to signals of alignment between the team and the Decentralized Autonomous Organization

According to the founder of Aave Labs, the upcoming proposal will explain how revenues beyond the core lending protocol will be shared with AAVE holders. The details of the distribution to AAVE holders will be outlined here.

These revenues typically come from the official Aave app, front-end swap integrations, and future consumer and enterprise products built on Aave.

The proposal will also include security mechanisms to protect the Aave DAO and prevent sudden changes that could negatively impact token holders.

Another important issue will be the control of the Aave brand and user gateways. This will include Aave's public face, such as websites, domain names, and social media accounts.

The proposal will also detail who owns these assets, how they will be used, and the limits on generating revenue without DAO approval.

Furthermore, the proposal will define Aave's long-term direction. Aave Labs argues that the protocol should not be limited to cryptocurrency lending but should expand to Real World Assets (RWA), consumer products, and institutional use cases.

This vision is based on future Aave V4 updates and the increased use of the GHO stablecoin.

The Impact of This Development on the Decentralized Autonomous Organization

This step follows weeks of public disagreements within the Aave ecosystem.

Recently, some delegates have alleged that Aave Labs has too much control over revenue streams and communication channels. They stated that uncertainties regarding governance and ownership have led to a sharp decline in AAVE's market capitalization in recent weeks.

In response, DAO representatives welcomed the positive approach but emphasized that clear and binding commitments are vital. They called for clear rules regarding ownership, revenue sharing, and accountability, stating, "Vague promises are not enough."

The upcoming DAO vote will decide whether this new framework will continue.

If approved, it could reduce internal debates and redefine Aave's balance between growth and governance. If not approved, the debate between control and compliance will likely continue.