A months-long dispute within the Aave community has come to an end with the passage of the 'Aave Will Win' proposal, a landmark vote that grants AAVE token holders full control over protocol revenue. The proposal, deemed the most significant in Aave's history, ensures that 100% of revenue from all Aave-branded products is redirected back to the DAO, effectively consolidating economic rights under the AAVE token. This shift in governance means that the DAO will now be responsible for funding Aave Labs' activities, with a $25 million stablecoin grant and 5,000 AAVE token allocation approved to support Aave Labs. The Aave DAO, a community-run decision-making body, has resolved a dispute that began when swap fees were redirected away from the community treasury.
The 'Aave Will Win' proposal decisively favors token holders, ensuring that protocol revenue is supplemented by application-layer revenue from Aave Pro, Aave App, Horizon, and Aave Kit. With this new framework, Aave aims to become fully token-centric, with a focus on reducing 'value leakage' and improving governance processes.
The proposal also outlines plans for technical advancements, including the expansion of collateral options and the investment in agentic AI infrastructure for developers building on Aave. As the largest lending protocol in DeFi, with roughly $25 billion in total value locked, Aave is poised for significant growth, with a target of scaling from $40 billion to $1 trillion.