Title: [TEMP CHECK] Strategic Reassessment: Aave Labs Funding & IP Recovery
Author: Gross
Date: 2026-01-31
Summary
This proposal serves as a formal request (TEMP CHECK) to the Aave DAO to immediately reassess its financial and operational relationship with Aave Labs. Following recent disclosures by BGD Labs regarding the discontinuation of “Project E” and the evident strategic misalignment between the V3 protocol and Aave Labs’ V4 goals, this proposal calls for specific actions: an immediate halt to all funding directed to Aave Labs (including Swap revenues) and the formation of a “Strategic Emergency Committee” to evaluate IP recovery or a transition to a Foundation model.
Motivation
The recent breakdown in alignment between Aave Labs and the DAO has created a critical risk to the protocol’s future sovereignty.
- Misalignment of Incentives: It is becoming evident that DAO funds are being utilized to build a new proprietary system (V4) that prioritizes Aave Labs’ control over the DAO’s interests. We are effectively financing a roadmap that may lock the DAO out of its own IP.
- Product Legitimacy & User Behavior: Users and liquidity providers are attracted to the security, liquidity, and battle-tested nature of Aave V3—not merely the logo. The perceived strategy to delegitimize V3 to force migration to a Labs-controlled V4 undermines the DAO’s current revenue streams.
- Operational Asymmetry: The unilateral control over communication channels (Aave.com, social media) creates an asymmetric power dynamic where one service provider can potentially bypass governance outcomes.
Specification
We are past the point of ambiguous agreements; clear execution is required. This proposal puts forward specific actions for the DAO to debate and vote on:
1. Immediate Defunding
Suspend all active payment streams, grants, and notably all revenue sharing from Swap fees allocated to Aave Labs until a legally binding agreement regarding IP ownership and the protocol’s future is reached.
2. Formation of an Emergency Strategic Committee
Establish a unified task force comprising major delegates, key service providers (e.g., ACI, Chaos, Llama), and OG community leaders. This committee will be empowered to bypass bureaucratic stalling and make rapid executive recommendations regarding the protocol’s future.
3. Specialized Legal & IP Recovery
Instead of a generic legal approach, the DAO must engage specialized DeFi and Intellectual Property legal counsel. The objective is to initiate the recovery of the “Aave” trademark, domain, and IP rights in relevant jurisdictions (US/EU), challenging the current withholding of these assets despite governance decisions.
Strategic Scenarios to be Evaluated by the Committee:
- Option A (Acquisition): The DAO negotiates a full buyout of Aave Labs at a fixed price to secure the protocol and IP.
- Option B (Foundation / Sovereign Fork): The DAO utilizes the Emergency Committee to establish a new Foundation, leveraging the V3 codebase and liquidity to launch a new frontend and brand, effectively cutting ties with the captured legacy entity.
- Option C (Service Provider Transition): Aave Labs transfers all IP/Brand rights to a DAO-controlled Foundation and remains solely as a technical service provider.
Next Steps
- Sentiment Check: Gather community feedback via this TEMP CHECK to validate the proposed direction.
- Formal Proposal (ARFC): If sentiment is positive, escalate to an ARFC to formalize the suspension of payments and the selection of the Committee members.
- Snapshot Vote: Ratify the defunding and committee formation via a Snapshot vote.
Disclaimer
The author is an active community member and token holder. This proposal is made in the interest of decentralization, protecting the DAO’s treasury, and ensuring protocol sovereignty.
Copyright
Copyright and related rights waived via CC0.