The prolonged governance battle that began when Aave Labs rerouted swap fees away from the DAO treasury has come to an end, with the community voting in favor of the proposal. The 'Aave Will Win' proposal, deemed the most significant in Aave's history by its founder, has been passed, establishing a framework that redirects all revenue from Aave-branded products back to the DAO and consolidates economic rights under the AAVE token.
This move signifies a shift in responsibility, with the DAO now tasked with funding Aave Labs' activities, including a $25 million stablecoin grant and 5,000 AAVE token allocation. The Aave DAO, a community-driven decision-making body, oversees the Aave lending protocol, enabling token holders to vote on key decisions such as upgrades, fees, and treasury use. The 'Aave Will Win' proposal has decisively resolved the dispute in favor of token holders, ensuring that protocol revenue, which reached $140 million in 2025, will be supplemented by application-layer revenue from various Aave products.
The proposal also introduces measures to prevent 'value leakage' and promotes a 'fintech-like experience' for mainstream users, with ambitious plans to scale from $40 billion to $1 trillion, positioning Aave as a comprehensive financial network.