In a significant milestone, Aave's governance has passed a landmark proposal known as 'Aave Will Win' (AWW), which Aave founder Stani Kulechov described as 'the most important proposal in Aave's history'. This proposal establishes a framework that channels 100% of revenue from all Aave-branded products back to the DAO, consolidating economic rights under the AAVE token. Consequently, the DAO is now responsible for funding Aave Labs' activities, with the proposal approving a $25 million stablecoin grant and a 5,000 AAVE token allocation, valued at approximately $6.8 million, to Aave Labs.
The Aave DAO, a community-run decision-making body, oversees the Aave lending protocol, enabling token holders to vote on key decisions such as upgrades, fees, and treasury use. The 'Aave Will Win' proposal resolves a contentious issue that emerged in December when it was discovered that swap fees had been quietly redirected away from the community treasury. By decisively allocating protocol revenue to token holders, the proposal addresses a deeper tension regarding control over the protocol's user-facing products and the revenue they generate. With protocol revenue reaching $140 million in 2025 and expected to match this figure in 2026, the AWW proposal supplements this income with application-layer revenue from Aave Pro, Aave App, Horizon, and Aave Kit.
Swaps on Aave.com and Aave Pro are generating an additional $10 to $20 million in revenue beyond existing protocol fees. Aave App aims to provide a 'fintech-like experience' for mainstream users, complete with $1 million account protection per user and a card that will launch later, generating fees for the treasury. The proposal takes a firm stance against 'value leakage', mandating that service providers build exclusively for Aave and adhere to measurable goals, with governance process improvements planned to minimize 'politics and friction'.
Technically, Aave V4's reinvestment feature will convert idle float capital in lending pools into yield-generating positions, creating an additional revenue stream. 'Spokes' will expand collateral options, addressing the demand side of DeFi liquidity, and the team plans to invest in agentic AI infrastructure for developers building on Aave.
With roughly $25 billion in total value locked across multiple chains, Aave is the largest lending protocol in DeFi, alongside Uniswap and Lido as one of the few protocols generating nine-figure income. Kulechov's stated target is to scale from $40 billion to $1 trillion, positioning Aave as 'a financial network that any fintech, bank, or asset manager can plug into', rather than a traditional bank.