Aave's Governance Structure Under Scrutiny as Revenue Reallocation Proposal Sparks Debate

The Aave protocol, valued at $2 billion, has faced governance challenges in recent times. The issue of ownership and control has been a contentious topic within the DAO, with members questioning whether the DAO or Aave Labs has authority over the brand and intellectual property.

A proposal to reallocate revenue from Aave Labs to the DAO has sparked debate, with some seeing it as a step towards aligning economic interests with token holders. However, others have raised concerns about the proposal's ambiguity and potential consequences for the DAO's treasury.

Other DeFi protocols, such as Hyperliquid and Uniswap, have taken different approaches to governance, including implementing mechanisms for automatic value sharing and revenue allocation. These approaches aim to balance economic benefits with community control, raising questions about the future of DAO governance in DeFi.