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AAVE token holders propose DAO adopt "poison pill plan" to annex Aave Labs, further escalating the income distribution controversy

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2025-12-16 23:35:14
On December 17th, an Aave DAO participant questioned whether the relationship between the Aave protocol and the DAO and Aave Labs needs to be reassessed. In a recent governance forum post, user tulipking proposed that Aave DAO should take control of Aave Labs' intellectual property (including its published code and brand trademarks) and company equity by filing a "poison pill" lawsuit.
The move is intended to replace control of the lending protocol and solidify the ownership of all AAVE token holders. This "declaration of sovereignty" marks a further escalation of ongoing discussions among Aave community members about how to distribute the revenue from the protocol and which organisation ultimately controls Aave. "This is a defensive'poison pill 'designed to protect DAOs from centralised control and ensure that all value flows back into the hands of AAVE holders," Tulipking wrote in its proposal.
By monetizing the Aave brand, front end and user base without the DAO's approval, Aave Labs has effectively privatised assets that should belong to the community. If Labs is unwilling to voluntarily share revenue and control, then the DAO must take everything back.
In addition to taking full control of Aave's intellectual property, Tulipking is proposing to take back "all past revenues generated by Aave Labs from Aave-branded products" and take over the company, essentially "turning Aave Labs into a wholly owned subsidiary of The DAO".
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