Aave Adopts New Revenue Model and Governance Framework

Aave has taken a significant step towards its financial and governance evolution with the approval of the AWW proposal. The community-backed initiative seeks to redirect application revenue directly into the DAO treasury, which will be utilized for future development and growth.

The new framework aims to align ownership and value generation for AAVE token holders, who will now benefit from 'ownership of brand, users, and integrations.' This shift also introduces streamlined governance and transparent risk controls, eliminating unnecessary bureaucracy in decision-making.

Aave's new dual-layer risk governance seeks to ensure a rapid, unified response to evolving market dynamics, while enhancing the protocol's safety and efficiency as competition among DeFi platforms intensifies. The approach leverages an internal team in Aave Labs to coordinate with established external risk managers such as Llama Risk and Token Logic.