Aave DAO Approves $25M Funding and 'Aave Will Win' Restructuring Amid Governance Controversy
On Sunday, the Aave DAO approved the 'Aave Will Win' framework, which includes a $25 million grant in stablecoins and a bonus of 75,000 AAVE tokens for Aave Labs. Founder Stani Kulechov garnered nearly 75% of the vote, with 522,780 in favor and 175,310 opposed, transitioning to a token-focused model. This new structure ensures that all revenue from Aave products will go to the community treasury, addressing revenue issues from late 2025. The funding will be distributed as $5 million immediately, $5 million over the next six months, and $15 million over a year. The 75,000 AAVE tokens, worth $6.8 million, will be unlocked over four years. Concerns led major partners like Aave Chan Initiative and Chaos Labs to withdraw. Following the news, AAVE's price increased by over 8% to $97.67.
Key facts
- Aave DAO passed 'Aave Will Win' framework on Sunday
- $25 million stablecoin grant approved for Aave Labs
- 75,000 AAVE token bonus worth ~$6.8 million authorized
- Vote had 522,780 in favor vs. 175,310 against (75% support)
- 100% of income from Aave products now goes to community treasury
- Aave Chan Initiative and Chaos Labs exited DAO after vote
- Aave targets $1 trillion in value from current $25 billion TVL
- AAVE price rose 8% to $97.67 post-vote
Entities
Artists
- Stani Kulechov
- Marc Zeller
Institutions
- Aave DAO
- Aave Labs
- ParaFi Capital
- Areta
- Token Logic
- Aave Chan Initiative
- Chaos Labs
- BGD Labs
- DeFiLlama
- NFT Plazas