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Aave DAO Redirects All Product Revenue to Treasury After Approving $25 Million for Aave Labs

The decision shifts Aave to a token-funded model that ties growth to AAVE holders.

Overview

  • Aave governance, which passed the Aave Will Win plan on Sunday with about 75% support, will send 100% of Aave-branded app revenue to the community treasury.
  • The package grants Aave Labs $25 million in stablecoins released in three tranches over 12 months, plus 75,000 AAVE that vests over four years.
  • Funding streams start Monday to an Aave Labs wallet, marking a move to DAO-paid development and exclusive focus on Aave products.
  • The vote also ratifies Aave V4 as the long-term base, which reinvests idle pool funds and adds modular Spokes to expand collateral and new revenue.
  • The change follows a late‑2025 dispute over swap fees moving off‑treasury and coincides with cutbacks or exits by Aave Chan Initiative, BGD Labs, and Chaos Labs, raising near‑term governance risks.