First off, I want to express my clear support for this ARFC. The Aave Will Win Framework brings a tremendous amount of structural and operational value to the protocol. Considering that Aave Labs is stepping up to absorb the massive workload and responsibilities left by the departures of BGD and ACI, the proposed budget is entirely reasonable. Consolidating these efforts under one clear, accountable roof is the right move for our long-term efficiency.
However, as a delegate representing token holders, I have to address the elephant in the room.
Despite this major, highly anticipated proposal going live, the AAVE token has taken a significant hit, breaking below the psychological $100 barrier. We can build the best lending infrastructure in the world, but the market is always right. For years, the AAVE token has struggled to build and maintain sustained momentum. A large part of that blame falls squarely on the persistent void regarding the token’s utility. At both a structural and communicational level, we have failed to translate the protocol’s undeniable success (TVL, revenue) into tangible token holder value, and the market is punishing us for it daily.
A few weeks ago, I published The AAVE Utility Renaissance Temp Check to try and inspire Labs and the community to tackle this exact issue. I feel I may have fallen short in that mission, as this current framework still largely leaves token holders on the sidelines. I outlined ideas like introducing wstkAAVE as collateral (with a mandatory liquidity bootstrapping phase) and Guaranteed GHO Rebates via an off-pool Merkle-based Claim contract.
I don’t know if these specific mechanisms are fully feasible within the upcoming V4 architecture, but they were meant to act as catalysts. They were designed to put token holders front and center again.
Nobody benefits from a suppressed token price. This is especially critical right now: since Labs is wisely putting the token at the center of its strategy to retain top talent by offering bonuses in AAVE, it is in absolutely everyone’s best interest—Labs included—to ensure the token appreciates through real, fundamental utility.
The framework is strong, but it feels incomplete without a definitive strategy for value accrual. I would love to see Labs explicitly consider incorporating a central idea, or a dedicated workstream within this mandate, focused purely on restoring AAVE token utility.
Let’s make sure the protocol wins, but let’s also make sure the token holders win alongside it.