The Aave community has put an end to a lengthy governance dispute with the passage of the 'Aave Will Win' proposal, which founder Stani Kulechov considers 'the most important proposal in Aave's history'. This proposal establishes a framework that redirects all revenue from Aave-branded products back to the DAO and consolidates economic rights under the AAVE token. As a result, the DAO is now responsible for funding Aave Labs' activities, with a $25 million stablecoin grant and 5,000 AAVE token allocation approved.
The Aave DAO, a community-run decision-making body, manages the Aave lending protocol and allows 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 move decisively favors token holders, with protocol revenue supplemented by application-layer revenue from various Aave products. The proposal aims to prevent 'value leakage' and ensures that service providers build exclusively for Aave, with measurable goals and improved governance processes.
Aave V4's reinvestment feature and new 'Spokes' are set to expand collateral options and address DeFi liquidity demands. With roughly $25 billion in total value locked, Aave is the largest lending protocol in DeFi, and the team aims to scale from $40 billion to $1 trillion, positioning Aave as a financial network for fintech, banks, and asset managers.