The months-long governance dispute within the Aave community has come to an end, with the approval of the 'Aave Will Win' proposal. This landmark decision, deemed the most significant in Aave's history by founder Stani Kulechov, establishes a framework where 100% of revenue from all Aave-branded products is redirected 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 an initial $25 million stablecoin grant and 5,000 AAVE token allocation, valued at approximately $6.8 million, approved for Aave Labs.
The Aave DAO, a community-run decision-making body, oversees 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 emerged in December when it was discovered that swap fees had been quietly redirected away from the community treasury. This move decisively favors token holders, ensuring that protocol revenue, which reached $140 million in 2025 and is expected to match this figure in 2026, will be supplemented by application-layer revenue from various Aave products.
The proposal also introduces measures to prevent 'value leakage,' ensuring that service providers build exclusively for Aave, with measurable goals and a focus on reducing friction in the governance process. Technological advancements, including Aave V4's reinvestment feature and the introduction of 'Spokes' to expand collateral options, are set to further enhance revenue streams. With roughly $25 billion in total value locked across multiple chains, Aave is poised to scale significantly, aiming to become a comprehensive financial network that any fintech, bank, or asset manager can integrate with.