The Aave community has put an end to a months-long governance dispute with the passage of the 'Aave Will Win' proposal, which redirects all revenue from Aave-branded products back to the DAO treasury, consolidating economic rights under the AAVE token. This move 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.
The proposal resolves a controversy that began when swap fees were quietly redirected away from the community treasury, exposing a deeper tension over control of the protocol's user-facing products and revenue. 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 community has taken a hard line against 'value leakage,' requiring service providers to build exclusively for Aave and meet measurable goals. 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 to scale as a financial network, targeting mainstream users and positioning itself as a key player in the DeFi ecosystem.