Summary
This proposal introduces a two-part licensing framework for the canonical Aave V4 repositories: a BUSL–based license for the core codebase, and a Contributor License Agreement (CLA) for anyone who wants to contribute to the codebase. The goal is to put in place a framework that is clear, consistent, enforceable, and fair to contributors. Together, these two elements would create a transparent foundation for how V4 is developed and shared going forward.
Motivation
V4 represents one of the most significant innovations for the protocol to date. Its modular architecture is designed to set the foundations for continuous expansion, and will enable the protocol to evolve over time while maintaining the path for community contributions. The proposed approach follows the same core principle used for V3 under BUSL: protect the codebase for a defined period, then transition to open source automatically. With V4, the goal is the same, but with a couple of improvements suggested for the implementation.
Today, the community is preparing for the production release and the finalisation of the governance-aligned licensing framework. In line with the V4 development proposals, the intention is to migrate the V4 canonical repository under DAO ownership, with the full licensing package and CLA published for the community.
This proposal introduces a couple of practical improvements to make that model more robust and clear to the community.
First, contributions. V4 is intentionally more extensible, and we expect more contributions from service providers and community builders. The proposed CLA brings those contributions under the same licensing framework as the core codebase. This keeps the repository licensing coherent and avoids fragmentation as the ecosystem grows.
Second, clarity. The V4 repository uses SPDX license identifiers at the file level rather than applying a single license across the entire codebase. We are looking to restructure the repository so that each file will include a simple header indicating its license using SPDX identifiers, with the full license texts stored in a /licenses folder in the repository. This makes it easy to follow which license applies to which part of the code. This structure also aligns well with possibilities that come with the modular Hub and Spoke architecture of V4.
Together, these improvements are designed to make the V4 licensing framework clearer, more resilient, and better aligned with the community and how the protocol will evolve.
Specification
BUSL-based repository license (Aave V4 core)
Please review the proposed text here: BUSL_LICENSE
The V4 core repository will be licensed under BUSL, consistent with the approach taken for V3 BUSL implementation, with these clarifications:
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DAO Ownership. Aave DAO is the owner of the canonical Aave V4 codebase and the associated intellectual property rights. During the development phase of Aave V4, Aave Labs has held the relevant copyright and licensing authority to protect and administer those rights on behalf of the Aave DAO while the governance-aligned licensing framework is finalised.
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Restriction design. V4 BUSL inherits the broad principles of the earlier BUSL restriction framework defined by the community, but with change in how those restrictions are phrased. V3’s language leaned on outcome-based concepts, things like “harm” or “migration”, which we think shifts the burden of proof in an unhelpful direction. V4 BUSL approach would improve the approach by reframing the underlying restrictions in conduct-based terms: what was deployed, where, and for what purpose, because it would make it far easier to act on in practice.
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Change Date. Consistent with the BUSL, the codebase transitions automatically to a permissive open-source license on the Change Date. That mechanism is unchanged from V3 BUSL. We suggest that the Change Date occurs within 5 years from the date of deployment of Aave V4 or earlier as recorded in a designated “changedate” text record.
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Scope note on architecture. This license governs the canonical repository and derivatives under copyright doctrine. Custom deployments that don’t incorporate or derive from the canonical repository code are not intended to fall within its scope.
Aave V4 Contributor License Agreement (CLA)
Please review the proposed text here: CLA_LICENSE
Any contributor to the canonical V4 repository will be asked to accept the CLA. The CLA is a license, not a transfer of ownership. Contributors are not handing their rights over, instead, they’re granting the community a consistent, irrevocable right to use, incorporate, and sublicense their contribution as part of the canonical codebase. This matters because, without a CLA, contributions sit in an ambiguous space: the community may not have a clear, enforceable right to the code it’s building on. The CLA just formalises what should be common sense, and ensures the licensing framework applies consistently across the entire repository.
Next Steps
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Engage with the community and service providers to refine the detailed proposal
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If consensus is reached on this TEMP CHECK, escalate this proposal to the Snapshot stage
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If the TEMP snapshot outcome is YAE, incorporate stakeholder feedback and move proposal to ARFC stage
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If consensus is reached on the ARFC, escalate the proposal to the Snapshot stage
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If the ARFC snapshot outcome is YAE, execute the IP transition (including modifications arising from governance discussions), along with the transfer of the V4 core IP and the migration of the canonical repositories into the Aave DAO code repository.
Copyright
Copyright and related rights waived via CC0.