- Aave DAO approved $25M funding with 75% support, allocating stablecoins and tokens to support ongoing development efforts.
- Funds will be distributed in phases over 12 months, with unused capital returning to the DAO and tokens vesting over 4 years.
- Vote showed strong backing but internal division, indicating a shift to a structured treasury-led funding model for growth.
Aave DAO has approved a $25 million funding package for Aave Labs following a binding on-chain vote that closed with about 75% support. The decision, finalized in early April, allocates stablecoins and tokens to fund development, as the DAO shifts toward a structured, treasury-led model under its “Aave Will Win” framework.
Funding Structure Sets Phased Distribution Plan
The approved package includes $25 million in aEthLidoGHO stablecoins and 75,000 AAVE tokens. Notably, the stablecoin allocation will roll out in three phases over 12 months. An initial $5 million releases immediately, followed by another $5 million within six months.
The remaining $15 million will be issued within 12 months, completing the allocation cycle. However, any unused funds after this period must return to the DAO treasury. Meanwhile, the 75,000 AAVE tokens will vest linearly over 48 months.
This structure ensures controlled capital deployment while aligning incentives over a longer timeframe. As a result, the DAO links funding with execution timelines and accountability measures.
Vote Reveals Support But Highlights Internal Divide
The proposal recorded 522,780 votes in favor against 175,310 opposing votes. Despite strong approval, notable resistance emerged from the Aave Chan Initiative. It cast 166,200 AAVE votes against the plan, reflecting governance concerns raised earlier.
Other participants, including institutions and individual holders, split across both sides of the vote. However, the final outcome confirmed majority backing for Aave Labs’ operational roadmap.
Following the vote, on-chain execution began, with funds scheduled for transfer to an address controlled by Aave Labs. This step moves the decision from governance approval into active funding.
Framework Introduces New DAO Funding Model
The grant marks the first major allocation under the “Aave Will Win” framework. Under this model, revenue generated from Aave products flows into the DAO treasury. The DAO then redistributes capital for development and ecosystem growth.
However, the current vote covers only core funding. Separate proposals will address growth and product-specific grants. This approach allows tokenholders to review each initiative individually.According to founder Stani Kulechov, the framework represents a key milestone for the protocol. Earlier governance debates, including a failed proposal on brand control, shaped the current structure.