Following a prolonged governance dispute, the Aave community has voted in favor of the 'Aave Will Win' proposal, a framework that consolidates economic rights under the AAVE token. This move directs 100% of revenue from Aave-branded products back to the DAO, effectively making the DAO responsible for funding Aave Labs' activities.
The proposal includes a $25 million stablecoin grant and a 5,000 AAVE token allocation to Aave Labs. The Aave DAO, a community-run decision-making body, manages the Aave lending protocol, allowing token holders to vote on key decisions. The 'Aave Will Win' proposal resolves a controversy that emerged in December when it was discovered that swap-related fees had been quietly shifted away from the community treasury.
This new framework positions Aave as a fully token-centric protocol, with a focus on preventing 'value leakage' and ensuring that service providers build exclusively for Aave. The proposal also outlines plans for technical improvements, including the expansion of collateral options and the investment in agentic AI infrastructure for developers building on Aave.
With approximately $25 billion in total value locked across multiple chains, Aave is the largest lending protocol in DeFi, generating $140 million in annual revenue. The community's goal is to scale from $40 billion to $1 trillion, establishing Aave as a comprehensive financial network.