Author: AxieAur
Title: Aave Protocol Treasury Revenue Sharing Program
Date: 2026-04-07
Abstract:
Initiate and implement AAVE Protocol Treasury Revenue Sharing Mechanism. Create mechanism to share monthly AAVE protocol revenues with stakers of AAVE token who have been staking for 30 or more days. Start monthly revenue share at .25% of Aave protocol monthly revenues. Users will be able to claim revenues from frontend dashboard.
Motivation:
The intent of this initiative is multi-faceted:
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Create direct and long-term alignment between AAVE’s protocol profitability and AAVE token investors
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Encourage further staking of $AAVE, taking coins out of circulating and reducing available supply
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The idea of earning cash yield is more attractive than earning tokens for many investors
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Signal to market and investors owning $aave means owning a part of the protocol revenue. The amount isn’t as important as the philosophical direction and signal. Investors will want to own a piece of the revenues from the largest decentralized borrow/lend protocol in the world especially as we scale into securing trillions of dollars
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Add new value lever to AAVE token that can be increased or decreased dynamically based on company position, market conditions, etc… to increase the value proposition for $aave holders. Implement now while things are slow
Specification:
Each month:
On the first day of each month, .25% of Aave’s monthly revenues are made claimable to stakers of $AAVE who have staked for over 30 days (claim proportionate to user’s staked AAVE > 30 days / total staked AAVE > 30 days)
aave monthly revenue * (.0025) * (user’s stkaave amt > 30 days / total stkaave amt > 30 days) = user’s share of monthly revenue
This program can work in tandem with buybacks and/or buybacks can be eliminated if appropriate. Both have their pros and cons, and may be appropriate in different situations. There may also be situations where it makes sense to use neither.
The percentage of distribution is very small by design due to Aave’s current growth stage. There are trillions of dollars of value to be captured, and growing into the trillions of dollars secured is the most important goal. It is important the vast majority revenues focus on growth.
1 out of 400 dollars earned shared with stakers leaves 99.75% of revenues to be used for growth. Revenues shared in today’s environment would be very small.
Next Steps:
- Collect community feedback, conduct discussion, iron out technical implementation path if idea is well received
Copyright is open source on this proposal