A months-long governance battle has come to an end with the passing of the 'Aave Will Win' proposal, a framework that redirects all revenue from Aave-branded products back to the DAO and token holders. This move marks a significant shift, with the DAO now responsible for funding Aave Labs' activities, including a $25 million stablecoin grant and 5,000 AAVE token allocation. The Aave DAO, a community-run decision-making body, has effectively taken control of the protocol's revenue, resolving a dispute that began when swap fees were redirected away from the treasury. The proposal, deemed the most important in Aave's history, aims to make Aave fully token-centric, with a single asset and model.
The vote resolves a deeper tension over control of the protocol's valuable assets and revenue, decisively in favor of token holders. With protocol revenue expected to match $140 million in 2026, the proposal supplements this with application-layer revenue from various Aave products. The ambition lies in the application layer, with Aave App targeting mainstream users and generating fees for the treasury.
The proposal takes a hard line against 'value leakage,' ensuring service providers build exclusively for Aave and token holders. Technical advancements, including Aave V4's reinvestment feature and new 'Spokes,' expand collateral options and address DeFi liquidity demands. 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.