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 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 quietly redirected away from the community treasury.
Aave's governance system, a decentralized autonomous organization, manages the lending protocol, allowing token holders to vote on decisions. The 'Aave Will Win' proposal decisively favors token holders, with protocol revenue supplemented by application-layer revenue from Aave Pro, Aave App, Horizon, and Aave Kit. The proposal takes a hard line against 'value leakage,' with service providers required to build exclusively for Aave. Technical improvements include Aave V4's reinvestment feature and new 'Spokes' expanding collateral options.
Aave holds roughly $25 billion in total value locked, with a target of scaling to $1 trillion.