A months-long governance dispute within the Aave community has come to an end with the passage of the 'Aave Will Win' proposal, which redirects 100% of revenue from Aave-branded products back to the DAO, effectively consolidating economic rights under the AAVE token. This shift in governance means the DAO will now be responsible for funding Aave Labs' activities, with a $25 million stablecoin grant and 5,000 AAVE token allocation approved for Aave Labs.
The Aave DAO, a community-run decision-making body, manages the Aave lending protocol, allowing token holders to vote on key decisions. The 'Aave Will Win' proposal resolves a controversy that began when swap fees were redirected away from the community treasury, exposing a deeper tension over control of the protocol's revenue-generating products.
With this proposal, 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 expected to drive growth, with Aave App targeting mainstream users and generating fees for the treasury. The proposal also takes a hard line against 'value leakage,' ensuring service providers build exclusively for Aave and prioritize token holders. Technical developments, including Aave V4's reinvestment feature and new 'Spokes,' aim to expand collateral options and create additional revenue streams.
With roughly $25 billion in total value locked, Aave is poised for further growth, targeting a scale of $1 trillion and positioning itself as a financial network for fintech, banks, and asset managers.