Strategic Shift: Reshaping Aave's Tokenomics
Vishal Kankani, Head of Investments at Multicoin Capital, recently responded to Aave's WillWin framework, publicly endorsing the revenue distribution proposal submitted by Aave Labs. As a major AAVE token holder, Multicoin sees redirecting 10% of Aave-branded product revenue toward the DAO as a pivotal strategic move to establish a more transparent and sustainable tokenomic structure.
Proposal Breakdown: Over $40M in Incentives
The initiative includes approximately $25M in stablecoin rewards, 75,000 AAVE tokens (valued at ~$9M), and additional milestone-based incentives. The total economic exposure could reach $40M to $50M, representing 25% to 30% of the Aave DAO treasury.
- $25M in stablecoin rewards
- 75,000 AAVE tokens (~$9M)
- Supplementary milestone incentives
New Governance Model for DeFi
Multicoin Capital emphasized that if executed effectively, this proposal could not only reshape Aave's ecosystem but also set a precedent for decentralized finance (DeFi) governance. As one of the largest funding requests in Aave DAO history, this initiative has the potential to redefine treasury management across the sector.
Nevertheless, given the significant request size, Multicoin suggests the proposers provide more detailed financial and underwriting data to ensure the incentive structure remains reasonable and sustainable.