In a significant development, the Aave community has voted in favor of the 'Aave Will Win' proposal, which marks a major milestone in the protocol's history. The proposal, described as the most crucial in Aave's history, establishes a framework that channels 100% of revenue from all Aave-branded products back to the DAO, consolidating economic rights under the AAVE token. This move signifies a shift in the DAO's role, as it will now be responsible for funding Aave Labs' activities.
The proposal also approved a $25 million stablecoin grant and a 5,000 AAVE token allocation, valued at approximately $6.8 million, to Aave Labs. The Aave DAO, a decentralized autonomous organization, serves as the community-driven decision-making body for the protocol, enabling token holders to vote on key decisions such as upgrades, fees, and treasury use. The 'Aave Will Win' proposal resolves a contentious issue that arose in December when it was discovered that the integration of CoWSwap into Aave's interface had diverted swap-related fees away from the community treasury. This controversy highlighted a deeper tension between Aave Labs and the DAO over control of the protocol's most valuable assets.
The proposal decisively favors token holders, ensuring that protocol revenue, which reached $140 million in 2025, will be supplemented by application-layer revenue from Aave Pro, Aave App, Horizon, and Aave Kit. The application layer is poised for significant growth, with Aave App targeting mainstream users with a 'fintech-like experience' and a card that will generate fees for the treasury. The proposal also takes a firm stance against 'value leakage,' ensuring that service providers build exclusively for Aave and prioritize token holders' interests.
To drive growth, Aave V4's reinvestment feature will convert idle capital in lending pools into yield-generating positions, while new 'Spokes' will expand collateral options and address demand-side DeFi liquidity. The team also plans to invest in AI infrastructure for developers building on Aave.
With approximately $25 billion in total value locked across multiple chains, Aave is the largest lending protocol in DeFi, generating annual revenue of $140 million. The founder's stated target is to scale from $40 billion to $1 trillion, positioning Aave as a comprehensive financial network that any fintech, bank, or asset manager can integrate with.