Aave’s temp check passed, but governance is fracturing. This week Aave governance advanced a framework proposal called “Aave Will Win” by passing a temperature check, which is an early, non-binding signal vote that precedes a formal onchain proposal. The vote passed narrowly: 52.58% in favor, 42% against, and 5.42% abstain, with about 622,300 votes on the yes side. At a high level, the framework is trying to resolve an awkward reality: crypto’s biggest DeFi borrow/lend protocol is governed by a DAO, but much of the user-facing product layer has been built and operated by the centralized company, Aave Labs.
“Aave Will Win” proposes routing 100% of revenue from Labs-run products back to the DAO treasury (net of partner payouts), formally positioning Aave v4 as the long-term technical foundation, and pairing that with a major funding request of $25 million in stablecoins plus 75,000 AAVE. The problem is that this vote is landing in the middle of a governance credibility crisis. A dispute over interface fees and control escalated into broader accusations that Labs-linked voting power can effectively decide outcomes, and key groups have announced plans to step back this spring and summer.
What the heck is the AAVE token going to be useful for moving forward? The bull case and the bear case, and what has to happen for each to be true. Real value capture: fees, buybacks, treasury flows, and what is real versus aspirational. What Aave v4 changes economically, and what it breaks if it ships late or ships wrong.
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