The Aave community has voted in favor of the 'Aave Will Win' proposal, a framework that redirects all revenue from Aave-branded products back to the DAO, consolidating economic rights under the AAVE token. This move marks the end of a months-long governance dispute that began when swap fees were redirected away from the DAO treasury. The proposal, deemed the most important in Aave's history, allocates $25 million in stablecoins and 5,000 AAVE tokens to Aave Labs, making the DAO responsible for funding the company's activities.
The Aave DAO, a community-run decision-making body, has effectively taken control of the protocol's revenue, resolving a deeper tension over whether Aave Labs or the DAO controlled the protocol's most valuable assets. The 'Aave Will Win' proposal supplements protocol revenue with application-layer revenue from Aave Pro, Aave App, Horizon, and Aave Kit, generating an additional $10 to $20 million in revenue.
Aave App aims to provide a 'fintech-like experience' with $1 million account protection per user and a card that generates fees for the treasury. The proposal also takes a hard line against 'value leakage,' ensuring service providers build exclusively for Aave and adhere to measurable goals. Technical advancements, including Aave V4's reinvestment feature and 'Spokes,' expand collateral options and address DeFi liquidity demands. With roughly $25 billion in total value locked, Aave aims to scale from $40 billion to $1 trillion, positioning itself as a financial network for fintech, banks, and asset managers.