In a decisive move, the Aave community has voted in favor of the 'Aave Will Win' proposal, which establishes a framework for redirecting 100% of revenue from Aave-branded products back to the DAO, effectively consolidating economic rights under the AAVE token. This shift transfers the responsibility of funding Aave Labs' activities to the DAO, with an approved $25 million stablecoin grant and 5,000 AAVE token allocation.
The proposal resolves a long-standing dispute that began when swap fees were redirected away from the DAO treasury, exposing a deeper tension over control of the protocol's valuable assets. The 'Aave Will Win' proposal decisively favors token holders, supplementing protocol revenue with application-layer revenue from Aave Pro, Aave App, Horizon, and Aave Kit. With swaps on Aave.com and Aave Pro generating an additional $10 to $20 million in revenue, the application layer is poised for significant growth.
Aave App aims to provide a 'fintech-like experience' with $1 million account protection per user and a card launch, generating fees for the treasury. The proposal also addresses 'value leakage' by requiring service providers to build exclusively for Aave, with measurable goals and improved governance processes.
Technically, Aave V4's reinvestment feature and new 'Spokes' expand collateral options and address DeFi liquidity demands. With roughly $25 billion in total value locked, Aave is positioned for significant growth, aiming to scale from $40 billion to $1 trillion as a financial network for fintech, banks, and asset managers.