What did Aave DAO approve in this proposal?

Aave DAO approved a $25 million funding package in stablecoins plus 75,000 AAVE tokens for Aave Labs. The funding is part of the “Aave Will Win” framework aimed at accelerating protocol growth.

How will the $25M and AAVE tokens be distributed?

The $25 million will be paid in instalments over 12 months, while the 75,000 AAVE tokens will vest over four years. This structure aligns long-term incentives with development progress.

Why is this proposal important for Aave (AAVE)?

This marks a major shift to a DAO-funded operating model, where Aave Labs relies on treasury funding instead of retaining revenue. It changes how value flows within the Aave ecosystem.

What is the “Aave Will Win” framework?

It is a multi-year strategy focused on scaling Aave’s products, improving development speed, and expanding market reach. It also aims to better align incentives between developers and token holders.

How did the Aave community vote on this proposal?

The proposal passed with nearly 75% approval, indicating strong but not unanimous support. Some community members had concerns about governance and funding size.

What role does Aave Labs play after this change?

Aave Labs will focus solely on building Aave-related products while being funded by the DAO. Revenue from products will flow back into the DAO treasury instead of staying with the team.

How big is Aave in the DeFi market right now?

Aave is one of the largest DeFi protocols, with over $25 billion in total value locked (TVL). This scale makes the funding decision significant for the broader DeFi ecosystem.

What is Aave V4 and why does it matter?

Aave V4 is the next major upgrade and will serve as the protocol’s long-term technical foundation. It is expected to improve scalability, efficiency, and competitiveness.

Aave DAO approves $25M grant token incentives

Written by Isaac FrancisPublished Apr. 13 2026

Aave DAO has approved a $25 million funding package and 75,000 AAVE tokens for Aave Labs under its new growth framework.

The proposal passed with nearly 75% support, with stablecoins to be distributed over 12 months and tokens vesting linearly over four years.

“This is the direction we are committing to, a multi-year journey,”

Said Stani Kulechov.

The “Aave Will Win” framework aims to accelerate development by shifting Aave Labs to a DAO-funded model, with protocol revenue flowing back into the DAO treasury.

The move also positions Aave V4 as the long-term technical foundation, while aligning incentives for developers to expand the protocol’s ecosystem and product suite.

Aave remains one of the largest DeFi platforms with over $25 billion in total value locked, underscoring the scale of the strategic shift.

The proposal follows earlier governance debates around funding size, token voting power and control over brand assets, highlighting ongoing tensions within the community.

At the time of reporting, Aave price was $97.70.