The Aave community has voted in favor of the 'Aave Will Win' proposal, a framework that redirects 100% of revenue from all Aave-branded products back to the DAO, consolidating economic rights under the AAVE token. This move marks the end of a long-standing dispute that began when swap fees were redirected away from the DAO treasury. The proposal, deemed the most important in Aave's history, positions the DAO as the central decision-making body, responsible for funding Aave Labs' activities. A $25 million stablecoin grant and 5,000 AAVE token allocation have been approved to support Aave Labs.
The Aave DAO, a community-run governance system, 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 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 Aave Pro, Aave App, Horizon, and Aave Kit.
Swaps on Aave.com and Aave Pro are generating significant additional revenue, with ambitions to target mainstream users with a 'fintech-like experience' and launch a card that generates fees for the treasury. The proposal takes a hard line against 'value leakage,' requiring service providers to build exclusively for Aave, with measurable goals and governance process improvements planned. Technical developments include Aave V4's reinvestment feature, which turns idle float capital into yield-generating positions, and the expansion of collateral options through 'Spokes.' The team also plans to invest in agentic AI infrastructure for developers building on Aave. With roughly $25 billion in total value locked, Aave aims to scale from $40 billion to $1 trillion, positioning itself as a financial network that any fintech, bank, or asset manager can plug into.