The Aave community has voted in favor of the 'Aave Will Win' proposal, a landmark decision that marks a significant shift in the protocol's revenue distribution. The proposal, deemed 'the most important in Aave's history' by founder Stani Kulechov, ensures that 100% of revenue from all Aave-branded products is redirected back to the DAO, consolidating economic rights under the AAVE token.
This move effectively makes the DAO responsible for funding Aave Labs' activities, with a $25 million stablecoin grant and 5,000 AAVE token allocation approved to support Aave Labs. The Aave DAO, a community-run decision-making body, will oversee the protocol's development, including upgrades, fees, and treasury use. The 'Aave Will Win' proposal resolves a dispute that arose in December when delegates discovered that swap-related fees had been quietly shifted away from the community treasury. The proposal decisively favors token holders, supplementing protocol revenue with application-layer revenue from Aave Pro, Aave App, Horizon, and Aave Kit.
With protocol revenue projected to match the $140 million generated in 2025, the application layer is expected to drive growth, targeting mainstream users with a 'fintech-like experience' and generating additional revenue streams. The proposal also takes a hard line against 'value leakage,' ensuring that service providers build exclusively for Aave and adhere to measurable goals. Technical advancements, including Aave V4's reinvestment feature and the introduction of 'Spokes,' will expand collateral options and address DeFi liquidity demands.
With roughly $25 billion in total value locked, Aave is poised to scale from $40 billion to $1 trillion, positioning itself as a financial network for fintech, banks, and asset managers.