The Aave community has voted in favor of the 'Aave Will Win' proposal, a framework that redirects all revenue from Aave-branded products back to the DAO, consolidating economic rights under the AAVE token. This move marks a significant shift, with the DAO now responsible for funding Aave Labs' activities.
The proposal also includes a $25 million stablecoin grant and 5,000 AAVE token allocation to Aave Labs. The Aave DAO, a decentralized autonomous organization, manages the Aave lending protocol and allows token holders to vote on key decisions. The 'Aave Will Win' proposal has put an end to a long-standing dispute that began when delegates discovered that swap-related fees had been quietly shifted away from the community treasury.
The proposal decisively favors token holders, with protocol revenue now supplemented by application-layer revenue from various Aave products. The application layer is expected to drive growth, with Aave App targeting mainstream users and generating additional revenue for the treasury. The proposal also takes a hard line against 'value leakage,' ensuring that service providers build exclusively for Aave and do not compromise token holder interests.
Technical developments, such as Aave V4's reinvestment feature and new 'Spokes,' are expected to create additional revenue streams and expand collateral options. With roughly $25 billion in total value locked, Aave is the largest lending protocol in DeFi, and the recent proposal is expected to drive further growth and scaling.