Aave

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The Aave DAO has approved the "Aave Will Win" (AWW) proposal with nearly 75% of votes in favor, directing 100% of revenue from all Aave-branded products back to the community treasury and marking one of the biggest governance decisions in the protocol's history.The vote passed on a Saturday in February 2025, and Aave founder Stani Kulechov wasted no time&nbsp;<a href="https://x.com/StaniKulechov/status/2043382887764930635" rel="noopener noreferrer nofollow">calling it</a> "the most important proposal in Aave's history." The framework sets Aave V4 as the foundation for future development, restructures how revenue flows to the DAO, and outlines a multi-year plan to grow the protocol from $40 billion to $1 trillion in total value.<h2 id="span-span-strong-what-did-the-aave-will-win-proposal-actually-pass-strong-span-span">What Did the Aave Will Win Proposal Actually Pass?</h2>On February 12, Aave Labs introduced the AWW governance proposal to the Aave DAO. The core idea is: any revenue generated by Aave Labs from products built under the Aave brand goes entirely to the DAO treasury, not to the development company itself.This covers a wide range of products:<ul><li>Aave.com and Aave App – consumer-facing interfaces targeting mainstream users</li><li>Aave Pro – a platform for power users with advanced DeFi tools</li><li>Aave Kit – enterprise-grade integration tools, SOC2-compliant, for fintechs and partners</li><li>Horizon – Aave's real-world asset (RWA) platform, expanding with V4 support</li><li>GHO – Aave's native&nbsp;<a href="https://bsc.news/post/understanding-stablecoins-how-they-work-guide" rel="noopener noreferrer nofollow">stablecoin</a>, part of the broader token-centric model</li></ul>Swaps on Aave.com and Aave Pro are already generating $10 to $20 million in new revenue on top of existing protocol income. The protocol itself has accumulated $140 million in DAO revenue in 2025 alone, per AIP-1 (Aave Improvement Proposal 1), and 2026 is on track to match that figure despite a broader market downturn.<h3 id="span-span-strong-how-does-aave-v4-fit-into-this-strong-span-span">How Does Aave V4 Fit Into This?</h3>Aave V4 introduces a "reinvestment feature" that puts idle capital in lending pools to work generating yield, creating additional revenue beyond standard borrowing and lending activity. V4 also introduces "Spokes," which are modular extensions to the protocol that unlock new collateral types and address liquidity demand across different chains and markets. Aave V3 will remain fully maintained by Aave Labs in parallel.<h2 id="span-span-strong-how-is-aave-labs-being-funded-under-this-framework-strong-span-span">How Is Aave Labs Being Funded Under This Framework?</h2>The DAO approved $25 million in stablecoins for Aave Labs, paid in monthly installments over 12 months, alongside an allocation of 75,000 AAVE tokens vesting linearly over four years. The stablecoins fund day-to-day operations, while the token allocation is structured to align developer incentives with long-term protocol growth.Other grants tied to specific product launches and development milestones will go through separate governance proposals rather than being bundled into the AWW vote.<h2 id="span-span-strong-what-does-token-centric-mean-for-aave-holders-strong-span-span">What Does "Token-Centric" Mean for AAVE Holders?</h2>The AWW framework formalizes what Kulechov calls a "one asset, one model" approach. Under this model, holding AAVE means holding a stake in the protocol's revenue, its brand, its user base, and its integrations.As Kulechov put it in his post on X:&nbsp;<blockquote>"If you own AAVE, you own not just the economic rights of the protocol, but the brand, the users, and the integrations."</blockquote>The framework also establishes a community-protected vehicle to independently govern Aave's brand assets and intellectual property on behalf of token holders. Aave Labs has committed to working exclusively on Aave-related products going forward.<h3 id="span-span-strong-what-does-this-mean-for-governance-strong-span-span">What Does This Mean for Governance?</h3>The DAO is adopting what Kulechov describes as a "zero-bureaucracy" approach. Service providers (SPs) will be held to measurable goals, and payments simply for posting governance proposals are finished. The framework explicitly states zero tolerance for relationship gating, meaning no SP can use backroom access to influence decisions at the expense of token holders.Aave Labs will also set up a permanent internal risk management function to work alongside external risk managers like Llama Risk and Token Logic.<h2 id="span-span-strong-is-aave-building-a-regulatory-moat-strong-span-span">Is Aave Building a Regulatory Moat?</h2>Yes, and this is one of the less-discussed but more significant parts of the AWW framework. Aave Labs has spent years building regulated entities around its products. This includes Push Virtual Assets Ireland, which holds a CASP (Crypto Asset Service Provider) license under MiCA (Markets in Crypto-Assets regulation, the EU's crypto regulatory framework), as well as a UK EMI (Electronic Money Institution) licensed entity.Aave is pursuing additional licenses globally to enable direct fiat-to-Aave onboarding, which is a prerequisite for bringing non-crypto users into the protocol at scale. The Aave App is being built with a fintech-like experience and will include $1 million in account protection per user. A card product is also planned for later, which would generate additional fees for the DAO treasury.Aave Kit, the enterprise integration layer, is already SOC2-compliant, meaning it meets the security and data standards that banks and financial institutions typically require before partnering with any platform.<h2 id="span-span-strong-conclusion-strong-span-span">Conclusion</h2>The Aave Will Win framework passed with a clear majority and sets a defined direction for the protocol: all revenue flows to the DAO, AAVE becomes the single asset representing the full value of the protocol, and Aave Labs focuses entirely on building Aave products. With $140 million in protocol revenue already accumulated in 2025, regulated entities operating under MiCA and UK law, and products targeting both retail and institutional users, the AWW vote is less a statement of ambition and more a formalization of where Aave already stands.<h2 id="span-span-resources-span-span">Resources</h2><ol><li><a href="https://x.com/Aave" rel="noopener noreferrer nofollow">Aave on X</a>: Posts (April , 2026)</li><li><a href="https://x.com/StaniKulechov/status/2043382887764930635" rel="noopener noreferrer nofollow">Stani Kulechov on X</a>: Post on April 12</li><li><a href="https://www.coindesk.com/business/2026/02/12/aave-labs-proposes-aave-will-win-plan-to-send-100-of-product-revenue-to-dao" rel="noopener noreferrer nofollow">Report by CoinDesk</a>: Aave labs proposes ‘Aave Will Win’ plan to send 100% of product revenue to DAO</li></ol>

‘Aave Will Win’ Explained: How the AWW Framework Changes Revenue, Governance, and the AAVE Token

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