Aave Product Proposal Passes Temperature Check, Set to Direct 100% Revenue to DAO Treasury

After Stani.eth, the founder of Aave, announced the successful temperature check for the product proposal called “Aave Will Win,” the protocol governance system is entering a new phase that will fundamentally change the revenue distribution model. All profits from Aave products will be directed to the DAO Treasury instead of being distributed in the traditional manner.

Successful Temperature Check: The First Step Toward Change

March 1st marks a key milestone in this development. When the product proposal successfully passes community approval, the temperature check process serves as the initial stage of Aave’s governance process, used to gauge community interest and readiness for major changes. Passing this check indicates that the core idea of the proposal has been accepted by the majority of AAVE holders.

100% Revenue for DAO Treasury: Structural Financial Reform

The core of this product proposal is a plan to channel all revenue from Aave-branded products into the Aave DAO treasury. This is a significant change from the previous structure, giving the DAO greater financial control and the ability to make decisions on sustainable development spending. It also includes establishing a budget mechanism for maintenance and creating an investment approval system to support protocol expansion.

Aave V4 as a Foundation with a Long-Term Strategy

Earlier, on February 13th, Aave Labs introduced a governance proposal designating Aave V4 as the main technological foundation for the protocol’s future development. Other proposals include formal brand protection plans, which involve managing and controlling the Aave trademark through a dedicated structure. These measures demonstrate Aave Labs’ long-term approach to strengthening the protocol’s position and managing the DAO in a systematic and sustainable manner.

ARFC Stage: Refinement and Preparation for Next Approval

After the temperature check, the product proposal enters the ARFC (Aave Request for Comments) stage. During this phase, the Aave community collaborates to refine the proposal details based on feedback. The goal is to consolidate the proposal into a comprehensive and unified document before moving into the official voting phase. This step is crucial as it provides the community an opportunity to review and adjust details to ensure the final outcome aligns with the majority’s interests.

Implications for the Aave System

Passing the temperature check for this product proposal signifies the beginning of a new era for Aave in terms of self-governance. By directing 100% of revenue to the DAO Treasury, Aave DAO will have increased authority to steer the protocol and can strategically invest in technology development, community support, and marketing. This strategy reflects a central shift within the ecosystem to establish a solid foundation for the protocol and enable sustainable growth in the long term.