Aave Improvement Proposal (AIP): “The Poison Pill”
Title
AIP-XXX: The Poison Pill — Full Reversion of Aave Labs’ Code, IP, Equity, and Past Revenue to the Aave DAO
Abstract
This proposal demands that the Aave DAO immediately: (1) sue Aave Labs for full ownership of all code, intellectual property, and brand; (2) claim 100% of Aave Labs’ equity; and (3) reclaim all past revenue generated by Aave Labs from Aave‑branded products. This is a defensive “poison pill” to protect the DAO from centralized capture and ensure that all value flows back to AAVE holders.
Motivation
Recent actions by Aave Labs, including the unilateral redirection of front‑end swap fees (e.g., CoW Swap integration) to private addresses, have demonstrated that the Labs now treats Aave as a private company rather than a DAO‑governed protocol.
By monetizing the Aave brand, front‑end, and user base without DAO approval, Aave Labs has effectively privatized what should be a community‑owned asset. This proposal is a direct response: if the Labs will not voluntarily share revenue and control, then the DAO must take back everything.
This is not a negotiation; it is a declaration of sovereignty. The DAO owns the protocol, the brand, and the future. Aave Labs exists only at the pleasure of the DAO.
Proposal
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Code & IP Transfer
- The Aave DAO shall initiate legal proceedings to transfer full ownership of all Aave‑related code, documentation, trademarks, and intellectual property from Aave Labs and its founders to the Aave DAO.
- All future Aave code must be developed under a DAO‑controlled entity or multisig, with no exclusive rights held by Aave Labs.
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Equity Seizure
- The Aave DAO shall claim 100% of the equity in Aave Labs and any related entities, effectively converting Aave Labs into a wholly owned subsidiary of the DAO.
- Founders and employees of Aave Labs may continue to work for the DAO under new DAO‑approved employment or contractor agreements.
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Revenue Reclamation
- The Aave DAO shall sue Aave Labs for all past revenue generated from Aave‑branded products, including:
- Front‑end swap fees (Paraswap, CoW Swap, etc.)
- Any licensing, consulting, or service fees tied to the Aave brand
- Any other income derived from Aave’s protocol, brand, or user base
- All reclaimed funds shall be deposited into the Aave DAO treasury.
- The Aave DAO shall sue Aave Labs for all past revenue generated from Aave‑branded products, including:
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Future Governance
- No Aave‑branded product (front‑end, app, or service) may be monetized without an explicit DAO vote.
- Any future revenue from Aave‑branded products must be shared with the DAO via a transparent, on‑chain mechanism.
Implementation
- This proposal is a Governance Proposal (not an Executive Proposal) to establish the DAO’s intent.
- If passed, the Aave DAO shall:
- Authorize its legal counsel to file suit against Aave Labs for code, IP, equity, and past revenue.
- Freeze all DAO funding and grants to Aave Labs until full compliance is achieved.
- Appoint a “DAO Sovereignty Committee” to oversee the legal and operational takeover of Aave Labs’ assets.
- The proposal author reserves the right to update this AIP with specific legal jurisdictions, entities, and addresses once the DAO signals support.
Rationale (The “Poison Pill” Logic)
- This proposal is intentionally extreme to force a clear choice: either Aave Labs fully aligns with the DAO (revenue sharing, IP licensing, and governance), or the DAO treats it as a hostile entity and takes everything back.
- By making this demand, the DAO signals that it will not tolerate stealth privatization of its brand and revenue.
- If Aave Labs wants to avoid this outcome, it must come to the table with a real, on‑chain revenue‑sharing and IP‑governance model that benefits the DAO.