Following a prolonged period of governance disputes, the Aave community has voted in favor of the 'Aave Will Win' proposal, effectively redirecting 100% of revenue from Aave-branded products back to the DAO, consolidating economic rights under the AAVE token. This shift in control now positions the DAO as responsible for funding Aave Labs' activities, with a $25 million stablecoin grant and 5,000 AAVE token allocation approved for Aave Labs. The Aave DAO, a community-driven decision-making body, oversees the Aave lending protocol, enabling token holders to vote on key decisions such as upgrades and treasury use. The 'Aave Will Win' proposal marks a significant milestone, as it decisively resolves the dispute in favor of token holders, ensuring protocol revenue supplements application-layer revenue from Aave Pro, Aave App, Horizon, and Aave Kit.
With swaps on Aave.com and Aave Pro generating an additional $10 to $20 million in revenue, the application layer is poised for significant growth, targeting mainstream users with a 'fintech-like experience' and a card that generates fees for the treasury. The proposal also takes a firm stance against 'value leakage,' mandating that service providers build exclusively for Aave, with measurable goals and governance process improvements planned to reduce friction.
Technically, Aave V4's reinvestment feature and new 'Spokes' are set to expand collateral options, addressing DeFi liquidity demands, while investments in agentic AI infrastructure are planned for developers building on Aave. As the largest lending protocol in DeFi, with roughly $25 billion in total value locked, Aave aims to scale from $40 billion to $1 trillion, positioning itself as a comprehensive financial network.