[TEMP CHECK] Securing True Decentralization: Forking Aave V3 or an Outright DAO Buyout of Aave Labs IP

Governance General
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[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.

3 Likes
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Hi,
please create a proper TEMP CHECK if you do intend to create a proposal.
Thank you

3 Likes
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Thank you, @EzR3aL , for the guidance. The TEMP CHECK has been officially posted.

Now, it is absolutely crucial for our community leaders, major partners, and delegates to step in and share their honest perspectives. If we stay silent, Aave Labs’ one-sided propaganda will dictate the future of this protocol.

Let’s speak plainly: This massive project is essentially being held hostage by dirty political games. Under the guise of transitioning to a “Foundation” and handing over the aave.com brand, they are extracting an exorbitant, unchecked grant while simultaneously trying to force the DAO into a V4 migration.

I have one critical question for the delegates, partners, and the broader community:

Do you genuinely believe that Aave Labs will build V4, openly document every single line of code, and gracefully hand it over to the DAO to be maintained by anyone in the future, the way BGD Labs did with V3?

Or is this forced V4 transition just the beginning of a permanent vendor lock-in? A mechanism designed to create a new dependency that guarantees endless “grant” and funding requests from the DAO treasury for years to come?

If the DAO is expected to pay a $51M premium to acquire these rights and establish a foundation, why is Aave Labs still dictating the terms and acting like the absolute boss of this ecosystem? The DAO is the employer, not the ATM.

We need your voices now more than ever. The future of Aave’s decentralization depends on it.

@MarcZeller @ACI @Kene_Anode @Daren_eth @1delta @Sisyphos @bgdlabs

@TokenLogic @WintermuteGovernance @PennBlockchain @Michigan_Blockchain @fig @LlamaRisk @ChaosLabs

2 Likes
[TEMP CHECK] Aave Will Win Framework
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Let’s stop pretending. Aave Labs has made it glaringly obvious that their main strategy is a campaign of attrition exhausting and pushing out any developer, delegate, or partner who dares to oppose their monopoly.

We can no longer trust the transparency or neutrality of these governance votes. Labs has mathematically captured the voting power. The DAO and the protocol are under complete siege. They hold all the levers of control, allowing them to drain the DAO treasury at their own discretion, all hidden behind the illusion of ‘democratic voting.’

When governance is taken hostage, the community must act. There is only one viable path left for the true Aave ecosystem: A Community Fork of the battle tested V3 codebase, led by the independent delegates, DAO members, and developer partners. The protocol belongs to the community, not a centralized entity holding it hostage.

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Your proposal presents two toxic options. The proposal itself is illegitimate and fundamentally biased. Aave Labs has built strong working relationships with @TokenLogic, @ChaosLabs, and @LlamaRisk. ACI and BGD Labs do not represent all service providers.

1 Like