Aave's governance has passed a critical proposal, redirecting 100% of revenue from all Aave-branded products back to the DAO and consolidating economic rights under the AAVE token. This landmark decision resolves a significant governance dispute that began when Aave Labs initially redirected swap fees away from the DAO treasury.
The "Aave Will Win" proposal, championed by founder Stani Kulechov, ensures that protocol revenue, which generated $140 million in 2025, will now be supplemented by application-layer revenue from products like Aave Pro and Aave App. The DAO will now be responsible for funding Aave Labs' activities, including a recently approved $25 million stablecoin grant.
This shift solidifies the AAVE token's position as the sole asset representing the protocol's economic rights, brand, users, and integrations. Aave Labs has committed to exclusively developing Aave-related products under this new framework, aiming for a "fintech-like experience" for mainstream users and expanding collateral options with Aave V4's reinvestment features. With approximately $25 billion in total value locked, Aave continues its trajectory as a leading financial network for various institutions.