The Aave ecosystem has entered a new era after its decentralized autonomous organization (DAO) greenlit a major financing package for Aave Labs. The proposal, dubbed “Aave Will Win,” passed with approximately 75% of the vote and includes $25 million in stablecoins as well as an allocation of 75,000 AAVE tokens to Aave Labs.
DAO shifts Aave’s funding structure
Under the new plan, Aave Labs will transition to being directly funded by the DAO. Rather than keeping product revenues separate, future income will now be directed to the DAO treasury, marking a significant change in internal financial management.
The stablecoins in the financing package will be distributed in stages over 12 months to cover operational expenses. The token allocation will unlock over a four-year schedule, aiming to maintain long-term incentives.
The proposal also positions the upcoming Aave V4 release as the protocol’s technical foundation for the long term. In addition, a new organizational structure dedicated to managing the Aave brand is planned.
Aave founder Stani Kulechov described the proposal as the most significant step in the protocol’s history, emphasizing that token holders are not just investors but also key stakeholders across the ecosystem.
Community debate continues as price climbs
Despite strong support, the proposal sparked some concerns within the community. Debates centered on the size of the funding, transparency in how tokens confer voting rights, and clear definitions of revenue streams.
During the process, several governance participants withdrew from the project, and discussions on decentralization standards intensified, highlighting ongoing divisions within the ecosystem.
Nevertheless, Aave remains a dominant force in the decentralized finance (DeFi) sector. The platform’s total value locked has surpassed $25 billion, further solidifying its position in the industry.
With this new framework, Aave aims to accelerate product development, strengthen its competitive edge, and attract institutional investors. Capital flows toward on-chain financial products are expected to boost this strategic shift.
Despite the internal debates, market reaction was positive in the short term. AAVE rose about 8.7% in the past 24 hours, reaching $97.78, as expectations for accelerated growth under the new structure fueled investor optimism.
