AAVE moved sharply higher after the Aave DAO approved the “Aave Will Win” proposal, with the token rising more than 5% on Monday and trading above $94. The vote closed on Sunday with about 75% support, including 522,780 votes in favor and 175,310 against. The decision changes how value flows through the ecosystem: revenue from Aave-branded products will now be routed back to the DAO treasury, tightening the link between the token and the protocol’s commercial activity.
Governance vote redirects product revenue to the DAO
The proposal settles a governance dispute that had stretched on for months. One of the central points of tension was that swap fees from the user interface had been diverted away from the DAO treasury. Under the approved framework, Aave Labs shifts into a DAO-funded structure. The package includes $25 million in stablecoin funding, distributed in aEthLidoGHO, along with 75,000 AAVE subject to a four-year vesting schedule.
In return, Aave Labs will send 100% of revenue from all Aave-branded products back to the DAO treasury. The scope covers Aave.com, Aave Pro, Aave Card, Aave Kit, and Horizon, the project tied to real-world assets. According to the source material, the swap functions on Aave.com and Aave Pro alone are already generating an additional $10 million to $20 million in annual revenue.
Cash flow and TVL remain central to the repricing debate
Aave is already producing about $140 million to $142 million in annualized revenue, putting it in the same revenue range as major DeFi protocols such as Uniswap and Lido. The protocol also holds more than $25 billion in total value locked. The article adds that utilization is near 70%, while actively borrowed funds stand at $17.71 billion. Those figures help explain why the market treated the vote as more than a routine governance event.
Price rebounds, but the $100 area still matters most
On the chart, AAVE broke out of a local downtrend and printed a bullish engulfing candle on the daily timeframe, pointing to a firm defense of the $90 support zone. Even so, the token remains below its 50-day, 100-day, and 200-day EMAs, which the source places at $106.65, $124.87, and $156.32. Short-term momentum has improved. The broader structure has not fully turned yet.
The article highlights $97.51 as local resistance and $100.97 as the key breakout level. Immediate support sits in the $90 to $95 range, while a deeper floor is marked at $79. If AAVE reclaims and holds above $100, the source says the next levels to watch are $115 and $132. If that move fails, price may stay boxed between $90 and $97 in the near term.
V4 rollout and strategic expansion come with internal friction
The market move also came as Aave V4 was formally ratified as the protocol’s long-term technical base. The source says V4 launched on March 30, 2024 with a hub-and-spoke design aimed at improving liquidity efficiency, plus a reinvestment feature that puts idle float capital into yield-producing positions. In a post on X, Stani Kulechov said the Aave App is being built to deliver a fintech-grade experience, with $1 million in account protection per user and bank card launches planned.
That strategic consolidation has also led to pushback. BGD Labs, Chaos Labs, and the Aave Chan Initiative said they were exiting or winding down their roles. Marc Zeller of ACI cast the largest dissenting vote, totaling 166,200 AAVE, citing concerns about accountability and concentration of influence under Aave Labs. The next test is practical rather than rhetorical: whether the DAO can consistently capture the new revenue streams and turn this token-centric model into measurable treasury growth.