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:
Create direct and long-term alignment between AAVE’s protocol profitability and AAVE token investors
Encourage further staking of $AAVE, taking coins out of circulating and reducing available supply
The idea of earning cash yield is more attractive than earning tokens for many investors
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
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
Who is gonna take care of this?
Who will do the dev work and UI implementation?
Have you talked to SP like Aave Labs? Cause I assume they won’t do anything on this matter. They already have to cover BGDLabs & ACI work.
This proposal has no refinement or actual plan on how this should be executed.
Additionally assume the protocol generates 12m a month in revenue and you take 0.25% of it, that means 30k are being distributed across all Aave staker.
Now do the math and think about how much you would get per month.
Who is gonna take care of this? Who will do the dev work and UI implementation?
I am not sure who would develop it/implement it/maintain it, but I would imagine it would be an SP. The primary purpose of this proposal is to start thinking as a community about creating ways to eventually share revenue with holders/stakers of $aave. I’m less focused on the technical portion now and more focused on getting feedback on whether sharing revenues is a possibility and something that interests owners of Aave and the investment community. I think building infrastructure for that upfront could be very attractive to owners of Aave as we move forward.
Have you talked to SP like Aave Labs?
I have not talked to an SP like Aave Labs and thought this may be an appropriate forum to see how interested SPs may be in something like this/how heavy of a lift it is from a development, implementation/maintenance/legal standpoint. I agree SPs already have a heavy workload and this isn’t a high priority on the list right now with so much going on with the Aave Will Win items.
Now do the math and think about how much you would get per month.
I’ve done the math. This proposal isn’t about sharing A LOT of revenue right away. That revenue should be used for growth. It’s about building the infrastructure to share more when revenues increase into the future by many multiples. It’s about showing the investment community sharing direct revenue with token holders is possible.
In summary, I just want to get people thinking about this and tap the community’s ideas in terms of how they feel about it technically, financially, philosophically in terms of its feasibility/usefulness.
This is a step in the right direction, especially after the ACI departure and the broader debate around value accrual. Revenue sharing gives AAVE stakers a concrete reason to participate in governance, not just speculate on token price. My concern is implementation complexity. Monthly distributions require reliable on-chain revenue accounting, and Aave operates across 10+ chains now. How do we aggregate cross-chain revenue without introducing centralized reporting dependencies? I’d suggest exploring an AI-assisted treasury reporting layer something that can autonomously aggregate protocol fees across deployments and publish verifiable reports before distributions. This would also address the transparency issues that sparked the CoW Swap controversy. If revenue sharing is the incentive, transparent accounting is the trust layer that makes it work.