AAVE Token Soars 10% on News of Revenue Sharing Initiative

The AAVE token’s price rose 10% earlier today after founder Stani Kulechov posted in a governance forum. The price climbed from around $149 to $165 in 24 hours, with trading volume spiking alongside due to renewed optimism. Aave Labs announced it will share some revenue generated outside the core protocol with AAVE token holders.

This decision comes after recent disagreements in the community about how to distribute fees and manage the brand. The announcement indicates that developers and the decentralized autonomous organization (DAO) are increasingly collaborating.

Aave Labs Announces Revenue Sharing Plans

On January 2, 2026, Kulechov shared a post on the governance forum outlining his vision for expanding the Aave protocol beyond crypto lending. The objective is to support an asset base of $500 trillion by integrating real-world assets and partnering with institutions. The protocol’s Aave V4 will feature a flexible design that enables safe innovations while effectively combining liquidity.

Kulechov highlighted the need to focus on core values like open-source development and neutrality. Recently, concerns have arisen about some integrations that send fees to Aave Labs rather than the DAO. A previous proposal to transfer brand assets was met with significant opposition and rejected. In response, Aave Labs promised to share revenue from non-protocol activities, like consumer apps, with AAVE token holders.

Meanwhile, the protocol will outline how the revenue will be shared and include protections for the DAO via a formal proposal. This separation allows different teams to create expensive products without straining the DAO. The growth of the protocol will increase usage, while benefits from off-protocol activities will accrue to token holders. 

AAVE Surge on Revenue Sharing News

As of this writing, AAVE is trading at approximately $159, up 5.7% over the past 24 hours after shedding 4.3% of the initial surge, according to CoinGecko data. During the time of the news, the token reached a high of $166.80 and a low of $150.37. The trading volume exceeded $342 million, and the market capitalization is around $2.42 billion.

Analysts attribute the recent surge to renewed investor confidence in the DeFi sector, particularly in the Aave protocol. Notably, the latest developments related to revenue sharing have contributed to this momentum. The new initiative aims to prevent future issues related to branding or fees.

Users expect that the result of the formal proposal will influence Aave’s future in both institutional and consumer markets. Overall, the decision shows that DeFi systems are maturing as they grow.

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