The Aave community has put an end to a months-long governance dispute by voting in favor of the 'Aave Will Win' proposal. This proposal, deemed the most significant in Aave's history by founder Stani Kulechov, establishes a framework that redirects all revenue from Aave-branded products back to the DAO, consolidating economic rights under the AAVE token. As a result, the DAO will now be responsible for funding Aave Labs' activities, with the proposal approving a $25 million stablecoin grant and a 5,000 AAVE token allocation to Aave Labs.
The Aave DAO, a community-run decision-making body, manages the Aave lending protocol, allowing token holders to vote on key decisions such as upgrades, fees, and treasury use. The 'Aave Will Win' proposal resolves a controversy that began in December when it was discovered that swap fees had been quietly redirected away from the community treasury. This move decisively favors token holders, with protocol revenue now being supplemented by application-layer revenue from various Aave products. The proposal aims to prevent 'value leakage' by ensuring that service providers build exclusively for Aave, with measurable goals and improved governance processes.
Aave V4's reinvestment feature and new 'Spokes' are set to expand collateral options and address DeFi liquidity demand. With roughly $25 billion in total value locked, Aave is the largest lending protocol in DeFi, and the community is targeting significant growth, positioning Aave as a financial network that can be integrated into various fintech, banking, and asset management systems.