The lengthy governance dispute that started when Aave Labs diverted swap fees away from the DAO treasury has come to an end, with the community voting in favor of the 'Aave Will Win' proposal. This proposal, deemed 'the most important in Aave's history' by founder Stani Kulechov, establishes a framework that redirects all revenue from Aave-branded products back to the DAO and consolidates economic rights under the AAVE token. As a result, the DAO is now responsible for funding Aave Labs' activities, with a $25 million stablecoin grant and 5,000 AAVE token allocation approved. The Aave DAO, a community-run decision-making body, manages the Aave lending protocol and allows token holders to vote on key decisions.
The 'Aave Will Win' proposal resolves a controversy that emerged in December when delegates discovered that the integration of CoWSwap into Aave's interface had quietly shifted swap-related fees away from the community treasury. This proposal decisively favors token holders, with protocol revenue now supplemented by application-layer revenue from various Aave products. The ambition lies in the application layer, with Aave App targeting mainstream users and generating fees for the treasury.
The proposal also addresses 'value leakage' by requiring service providers to build exclusively for Aave, with measurable goals and reduced friction in the governance process. Technically, Aave V4's reinvestment feature and new 'Spokes' expand collateral options and address DeFi liquidity demand. With roughly $25 billion in total value locked, Aave aims to scale from $40 billion to $1 trillion, positioning itself as a financial network for fintech, banks, and asset managers.