[TEMP CHECK] Securing True Decentralization: Forking Aave V3 or an Outright DAO Buyout of Aave Labs IP
Author: Gross (Community Member)
Date: 2026-02-20
Simple Summary
This TEMP CHECK seeks community consensus on resolving the ongoing structural and financial conflicts between the Aave DAO and Aave Labs. Following the departure of BGD Labs and the proposed ~$51M funding request under the “Aave Will Win” framework, this proposal asks the community to choose between two definitive paths to preserve protocol decentralization:
Forking the Aave V3 codebase to establish a new, independent protocol.
Conducting a complete DAO buyout of the Aave brand and all associated Intellectual Property (IP) from Aave Labs.
Motivation
The recent announcement of BGD Labs ceasing their contributions is a critical warning sign for the DAO. It highlights a growing systemic risk: the centralization of protocol development and the erosion of a merit-based, multi-provider ecosystem.
Furthermore, the “Aave Will Win” proposal requests an unprecedented $42.5M in stablecoins plus 75,000 AAVE (totaling ~$51M) without prior accountability reports or sufficient checks and balances. Continuing under these conditions where the brand rights are leveraged to extract continuous, outsized capital from the DAO treasury under the guise of “grants” or “foundations” creates a toxic dependency.
To ensure the long-term survival, security, and true decentralization of our ecosystem, the DAO must eliminate this dependency. We must stop paying recurring premiums for brand control and take decisive action.
Specification
This TEMP CHECK proposes two actionable paths for the DAO to choose from:
Path 1: Forking the Aave V3 Codebase (The Open-Source Route)
Action: The DAO, in collaboration with remaining independent Service Providers and delegates, will fork the production-ready Aave V3 codebase.
Execution: We will launch a new, truly decentralized brand. A subsequent governance vote will be initiated to migrate the DAO’s $160M treasury and incentivize the migration of existing liquidity to the new protocol.
Rationale: V3 is the current revenue engine of the ecosystem. The DAO does not need to pay a $51M premium for an unreleased V4 or a centralized brand name when the open-source V3 architecture is already highly functional and secure.
Path 2: Complete DAO Buyout of Aave Labs IP (The Acquisition Route)
Action: The DAO formally rejects the “grant” model and instead initiates a negotiation to completely buy out the “Aave” brand, trademarks, front-end domains, and all related IP from Aave Labs.
Execution: A one-time buyout fee will be negotiated. Upon payment, 100% of the rights will be transferred to a strictly independent Foundation governed solely by the DAO, with zero Aave Labs control or recurring revenue share.
Rationale: If the DAO is expected to part with ~$51M, it should receive total ownership and sovereignty in return, putting an end to recurring financial extraction.
Next Steps
Gather community and delegate feedback on this TEMP CHECK.
If sentiment is aligned, escalate to a Snapshot vote with the following options:
YEA - Pursue Path 1 (Fork Aave V3)
YEA - Pursue Path 2 (Buyout Aave Labs IP)
NAY - Do Nothing / Maintain Status Quo
Based on the winning Snapshot option, draft an ARFC detailing the technical and financial execution of the chosen path.