The proposal Aave Will Win, which provides funding for Aave Labs and the transfer of revenues from ecosystem products to the treasury, was approved by a significant majority. This decision concluded a months-long struggle between Aave Labs and the decentralized autonomous organization (DAO) for control over the protocol and financial flows.
This is reported by Business • Media
“Aave Will Win, the most important proposal in Aave’s history just passed with a landslide.”
Reasons and Course of the Conflict Between Aave Labs and DAO
The dispute between Aave Labs and the DAO has been ongoing for an extended period and escalated particularly in late 2025. Community members accused Aave Labs of “usurping power” and seeking more funding. In December 2025, delegate EzR3aL approached Aave Labs regarding the distribution of additional fees generated from CoW Swap trades, noting that the studio was the one benefiting, not the DAO.
In response, Aave Labs attempted in December to put forward a proposal to transfer control over brand products to AAVE token holders, but this initiative did not gain support. Proponents of the proposal claimed there was a “quiet privatization” of the project by the studio. In early 2026, the studio proposed directing revenues from off-protocol fees to AAVE token holders.
In February, an updated proposal Aave Will Win was submitted, which included the transfer of DAO revenues in exchange for targeted funding for Aave Labs. However, part of the community considered the company’s requests excessive. The conflict was further complicated by the exit of contributor BGD Labs from the project, as well as the Aave Chan Initiative group, which disagreed with the voting process, deeming it illegitimate due to the use of Aave Labs’ own tokens. In early April, a similar decision to exit was made by Chaos Labs, citing increased workload and the departure of other contributors.
Voting Outcomes and Implications for Aave
On April 8, 2026, Aave Labs presented an updated version of the Aave Will Win proposal. Voting concluded on April 12 with a convincing majority in favor of the initiative, although the ACI group did not support it. From now on, the Aave project will become entirely focused on token development, with all revenues from external products, including Aave Pro, Aave.com, Aave App, Horizon, and Aave Kit, flowing into the DAO.
Aave Labs also commits to working exclusively on products within the ecosystem. AAVE token holders will gain rights to the brand, integrations, and economic flows. According to Stani Kulechov, this initiative is a strategic move to increase the project’s value — from $40 billion to $1 trillion.
Aave Labs will receive $25 million in stablecoins and 75,000 AAVE tokens (approximately $7.1 million at current rates) with a four-year vesting period. Mark Zeller, a well-known critic of the initiative, has not yet commented on the final voting results, but his reaction to Chaos Labs’ exit indicates that his position remains unchanged.
In light of the decision, the AAVE token price rose by 5.8%:
It is worth noting that the fourth version of the Aave protocol was launched at the end of March 2026.