The Aave community has put an end to a months-long governance dispute with the approval of the 'Aave Will Win' proposal, a landmark decision that redirects 100% of revenue from all Aave-branded products back to the DAO and consolidates economic rights under the AAVE token. This shift in control means the DAO is now responsible for funding Aave Labs' activities, with a $25 million stablecoin grant and 5,000 AAVE token allocation approved. The proposal resolves a controversy that began in December when it was discovered that swap fees had been quietly redirected away from the community treasury. The 'Aave Will Win' proposal decisively favors token holders, with protocol revenue now supplemented by application-layer revenue from Aave Pro, Aave App, Horizon, and Aave Kit.
The community has taken a hard line against 'value leakage,' ensuring that service providers build exclusively for Aave and prioritize token holders. With Aave V4's reinvestment feature and new 'Spokes' expanding collateral options, the protocol is poised for growth, with a stated target of scaling from $40 billion to $1 trillion.