The Aave community has voted in favor of the 'Aave Will Win' proposal, a framework that redirects 100% of revenue from Aave-branded products back to the DAO, consolidating economic rights under the AAVE token. This move resolves a long-standing dispute that began when swap fees were redirected away from the DAO treasury.
The proposal, deemed the most important in Aave's history, positions the DAO as responsible for funding Aave Labs' activities, with a $25 million stablecoin grant and 5,000 AAVE token allocation approved. Aave's governance system, a decentralized autonomous organization, manages the lending protocol, allowing token holders to vote on key decisions. 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.
The proposal aims to prevent 'value leakage' by requiring service providers to build exclusively for Aave, with measurable goals and governance process improvements planned. Aave V4's reinvestment feature and new 'Spokes' expand collateral options, addressing DeFi liquidity demand.
With roughly $25 billion in total value locked, Aave targets scaling to $1 trillion, positioning itself as a financial network for fintech, banks, and asset managers.