The Aave community has voted in favor of the 'Aave Will Win' proposal, a framework that redirects 100% of revenue from Aave-branded products back to the DAO, consolidating economic rights under the AAVE token. This shift makes the DAO responsible for funding Aave Labs' activities, with a $25 million stablecoin grant and 5,000 AAVE token allocation approved. The proposal resolves a dispute that began when swap fees were redirected away from the community treasury, exposing a deeper tension over control of the protocol's revenue-generating products. The 'Aave Will Win' proposal decisively favors token holders, supplementing protocol revenue with application-layer revenue from Aave Pro, Aave App, Horizon, and Aave Kit.
The application layer aims to generate additional revenue, with Aave App targeting mainstream users with a 'fintech-like experience' and a card launch. The proposal also takes a hard line against 'value leakage,' requiring service providers to build exclusively for Aave.
Technical developments include Aave V4's reinvestment feature, 'Spokes' expanding collateral options, and investment in agentic AI infrastructure. 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.