Aave DAO Votes Yes on $25M Grant and Token Allocation for Aave Labs

TLDR

• Aave DAO approved a $25M stablecoin grant to Aave Labs, passing with ~75% of votes in favor
• 75,000 AAVE tokens (~$6.8M) will also be allocated, vesting over 48 months
• The vote is part of the “Aave Will Win” framework, shifting Aave Labs to a DAO-funded model
• All revenue from Aave products will flow to the DAO treasury under the new structure
• The Aave Chan Initiative cast the largest dissenting vote at 166,200 AAVE against

Aave DAO approved a $25 million stablecoin grant to Aave Labs on Sunday, along with a 75,000 AAVE token allocation worth roughly $6.8 million. The vote closed with 522,780 AAVE in favor and 175,310 against, representing about 75% support.

The proposal is called the “Aave Will Win Framework: Primary Funding Request.” It is the first binding piece of a broader strategy introduced by Aave founder Stani Kulechov.

The stablecoin grant is structured in three parts. Aave Labs receives an immediate 5 million aEthLidoGHO allowance, a 5 million stream over six months, and a 15 million stream over 12 months. The 75,000 AAVE tokens will vest over 48 months from the DAO’s Ecosystem Reserve.

The Aave Chan Initiative, founded by Marc Zeller, cast the largest single vote against the proposal at 166,200 AAVE. The organization had previously announced it would exit its DAO role by July over concerns about governance standards.

Top votes in favor came from an address linked to ParaFi Capital with 190,000 AAVE, delegate “luggis.eth” with 123,580 AAVE, and governance firm Areta with 75,775 AAVE.

What Changes Under the New Framework

Under the new model, all revenue from Aave products — including aave.com swaps, Aave Pro, Aave App, and Aave Kit — will go to the DAO treasury. In return, the DAO funds Aave Labs’ operations directly.

Aave Labs will focus only on Aave-related products going forward. The framework also ratifies Aave V4 as the protocol’s long-term technical base. Aave V4 launched on Ethereum mainnet in late March.

A Turbulent Period for Aave Contributors

The vote comes after a difficult stretch for Aave’s contributor network. BGD Labs, a longtime technical contributor, ended its engagement on April 1 citing centralization concerns.

Risk provider Chaos Labs also announced its exit last week. Co-founder Omer Goldberg said its $3 million 2025 budget fell short of the estimated $8 million needed to manage both V3 and V4.

The temperature check for the framework passed in early March with just 52.58% support. Critics alleged that Aave Labs-linked addresses had influenced that vote.

Sunday’s binding vote showed stronger support at 75%, a clear improvement from the earlier check.

Growth and development grants tied to specific product launches — including the Aave App, Aave Card, and Aave Kit — will go through separate governance proposals.

Aave remains the largest decentralized lending protocol by deposits. Its total value locked exceeds $25 billion, according to DeFiLlama. The price of AAVE fell nearly 5% in the 24 hours around the vote but rebounded slightly after it passed.

Execution of the funding was scheduled for Monday afternoon, after which funds begin streaming to an Aave Labs-controlled address.

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