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- Aave DAO approves $25M funding for Aave Labs after dispute, gaining about 75% support.
- The new “Aave Will Win” framework redirects 100% product revenue to DAO treasury control.
- Structured payouts and token unlock aim to align long-term growth with DAO governance.
On April 12, 2026, the Aave DAO approved a plan for Aave Labs to receive $25 million in funding via an on-chain vote. The vote came after months of governance conflict and garnered roughly 75% support from active token holders.
The vote also unveiled the “Aave Will Win” framework. This system channels 100% of revenue generated from Aave-branded products to the DAO treasury. It also encompasses income from swap fees and services, including Aave App, Horizon, and Aave Kit. This structure also applies to future innovations such as Aave Card.
Source: Aave
DAO Secures Revenue and Funding
This changed, and the community treasury now receives all the earnings from these products. The model seeks to give AAVE token holders the complete economic benefit created by the protocol. It also cuts flows of revenue to outside organizations associated with the ecosystem.
According to the voting data, 522,780 AAVE tokens voted in favor of the proposal. A further 175,310 votes were cast against it. The result was a more robust showing than an earlier “temperature check” vote held in March 2026, which was passed with 52.58% approval.
As part of this plan, Aave Labs is set to receive a stablecoin transfer capping at $25 million. Paying will be done in a staggered manner. The first $5 million will be released on April 13, 2026. The $20 million balance will be paid over six and twelve months.
Additionally, 75,000 AAVE will be distributed to Aave Labs. The tokens will be released gradually over 48 months. The structure aims to have long-term development support protocol growth.
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Aave Conflict Leads to DAO Control
The governance dispute started in December 2025. Aave Labs added CoWSwap in the protocol interface at that time. This action effectively rerouted SWAP fee revenue from the DAO treasury. Token holders were reportedly worried about diminished returns.
Efforts to find solutions existed previously. A suggestion to transition selected assets into a DAO-led jurisdictional arrangement was rejected in March 2026. The vote resulted in a margin of 55.29% voting against, while nearly 41% did not participate.
Contributors also suffered repercussions from the conflict. Notably, BGD Labs, Aave Chan Initiative, and Chaos Labs have decided to withdraw from the project. Reasons for their decision include dissatisfaction with governance and operational aspects associated with the conflict.
Regardless, the new vote grants control to Aave DAO. Revenues from all branded products will go directly into the DAO’s treasury. Swapping alone yields an estimated revenue ranging from $10 million to $20 million annually.
In 2025, the protocol revenue was around $140 million. It is expected that this trend would continue until 2026. Under this model, the ownership of governance and profit is embedded in the DAO framework.
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