The Aave community has voted in favor of a proposal that marks a significant shift in the protocol's revenue distribution, with 100% of application and product revenue now being redirected to AAVE token holders. This move resolves a governance dispute that began in December when swap fees were quietly redirected away from the DAO treasury. The 'Aave Will Win' proposal, described as the most important in Aave's history, aims to make Aave fully token-centric, with a single asset and model. The proposal has passed with a landslide, and its implementation is expected to have far-reaching implications for the protocol's future development.
Aave Labs will now be funded by the DAO, with a $25 million stablecoin grant and 5,000 AAVE token allocation approved. The proposal also takes a hard line against 'value leakage', ensuring that service providers build exclusively for Aave and do not divert revenue away from token holders. With Aave holding roughly $25 billion in total value locked across multiple chains, the protocol is poised for significant growth, with a stated target of scaling from $40 billion to $1 trillion.