Aave DAO uses a 75% approval victory framework, routing protocol earnings to the governance treasury.

On April 13, Aave DAO passed its first substantive funding proposal under the “Aave Will Win” framework with about 75% support. The proposal will allocate $25 million in stablecoins to Aave Labs, and distribute 75,000 AAVE tokens from the ecosystem reserve, establishing a new governance principle that all revenue generated by all branded products flows entirely into the DAO treasury.

Aave Will Win Framework Core: A Fundamental Shift in the Revenue Attribution Model

The core business logic of the AWW proposal is a two-way exchange: all application-layer revenue generated by every branded product developed by Aave Labs—including the Aave App, Aave Pro, Horizon RWA, and Aave Kit—will flow entirely into the DAO treasury, in exchange for the DAO continuing to provide funding support for Aave Labs’ product R&D.

Previously, Aave DAO’s revenue relied almost entirely on the core lending protocol, and application-layer revenue did not systematically flow back. Under the latest structure, additional application revenue generated by the swap exchanges on Aave.com and Aave Pro (estimated at $10 million to $20 million per year) will also flow directly into the DAO treasury.

Aave Labs founder Stani Kulechov said on X that AWW means AAVE token holders will have “ownership of the brand, users, and integrations,” and called this proposal “the most important proposal in Aave history.”

Reshaping the Governance Structure: Outcome-Oriented Governance Replaces Bureaucratic Procedures

The AWW framework simultaneously drives reforms to Aave DAO’s governance structure, covering the following core aspects:

Key Points of Governance Reform Under the AWW Framework

Outcome-Driven Funding Allocation: Service provider (SP) funding requests must be based on clearly measurable deliverables, and inefficient pay-to-govern arrangements will be terminated

Full Financial Transparency: All parties collaborating with Aave must provide complete financial information, so that the intellectual property rights and value created through DAO treasury funds are attributed to the DAO

Anti-Vendor Lock-In Principle: The DAO explicitly opposes any vendor lock-in arrangements that harm token holders’ interests

Dual-Layer Risk Governance: Coordinated oversight between Aave Labs’ internal teams and external risk institutions such as Llama Risk, Token Logic, and others to strengthen economic and technical risk management

Aave’s Financial Fundamentals and End-to-End Revenue Roadmap

Based on the latest data, Aave DAO’s protocol revenue for 2025 is expected to be $140 million, and for 2026 it is expected to maintain a similar growth rate. With application revenue included, Aave is moving forward with a positive “full-stack profitability model.” The reinvestment tools introduced in the Aave V4 version, along with the continued expansion of collateral support, will further strengthen the scale of newly sourced revenue.

It is worth noting that this AWW proposal only establishes a foundational funding framework for Aave Labs’ product development; in the future, funding for each specific product will still need to be reviewed through a separate DAO proposal. AWW itself does not grant automatic funding for all subsequent products.

Frequently Asked Questions

What is the specific funding amount of the AWW proposal approved by Aave DAO?

The approved funding in this proposal consists of two parts: $25 million in stablecoins allocated directly to Aave Labs, and 75,000 AAVE tokens allocated from the ecosystem reserve (approximately $6.8 million at market price), for a total of more than $31.8 million. All allocations use a 48-month linear vesting mechanism.

How does the AWW framework change the revenue attribution of the Aave protocol?

Under the AWW framework, 100% of the application-layer revenue generated by all branded products under Aave Labs (including the Aave App, Aave Pro, Horizon RWA, etc.) will flow entirely into the DAO treasury, rather than being retained solely by Aave Labs. This is the first time the Aave protocol systematically incorporates application revenue into the scope of DAO governance, significantly expanding the actual benefit range for AAVE token holders.

After AWW is approved, will Aave Labs’ future products automatically receive funding?

No. The AWW proposal only establishes the foundational funding framework and the revenue attribution principles. Each specific product that Aave Labs develops in the future still needs to submit an independent DAO proposal, and will only receive funding after community review. AWW itself does not grant automatic funding eligibility for subsequent products.