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Asolica > Blog > Crypto > Is Aave Labs’ proposal ‘extractive’? DAO debate heats up
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Is Aave Labs’ proposal ‘extractive’? DAO debate heats up

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Last updated: February 13, 2026 3:18 pm
Admin
7 hours ago
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Is Aave Labs’ proposal ‘extractive’? DAO debate heats up
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Contents
  • Right vacation spot, however the route ‘needs work’
  • AAVE voting energy

Since December, the DeFi sector’s largest protocol has been wrestling with an existential query, pitting Aave Labs towards the DAO: who owns Aave?

What started as a dialogue over swap charges quickly escalated into an existential debate about possession of the Aave model, in addition to the rights to monetize it.

Yesterday, Aave Labs printed a “temperature check” entitled “Aave Will Win Framework” on the Aave governance discussion board.

Their headline is “100% of product revenue to the Aave DAO,” however the put up, which runs to virtually 4,000 phrases, doesn’t finish there.

At the moment we’re proposing the Aave Will Win Framework, a brand new alignment framework that directs 100% of product income to the Aave DAO treasury beneath a token-centric mannequin. pic.twitter.com/8PyBY1kxSi

— Aave (@aave) February 12, 2026

At a excessive stage, the put up proposes that each one of Aave product income will likely be directed to the DAO. A basis would even be set as much as “assume responsibility for holding and stewarding” the Aave model.

This addresses the DAO’s issues round Labs’ potential model seize on merchandise together with the entrance finish, Aave’s app, card and institution-focused Horizon market.

These concessions are accompanied by a funding request for appreciable sums, particularly $25 million in stablecoins and 75,000 AAVE.

Additional grants totaling $17.5 can be “payable upon specific product launches.”

The preliminary fee of stablecoins can be partially ($5 million) upfront, with the rest streamed over the next yr. AAVE tokens would unlock linearly over two years.

It clarifies “all funds will be spent on Aave-related efforts” resembling “user acquisition, marketing, and ongoing development.”

Right vacation spot, however the route ‘needs work’

Whereas DAO advocates usually see the proposal as directionally optimistic, issues stay over the calculation of income. That, and the huge sum of tokens requested, each stables and AAVE.

Vocal DAO delegate Marc Zeller reacted harshly to start with, calling Labs’ proposal “extractive” and a “gaslight.” He sees it as “raiding” DAO tokens “for zero actual enforceable commitment.”

An extended follow-up put up was extra optimistic, recognising “victory” for the DAO, whereas additionally recognizing that the transfer is actually “four proposals in a trenchcoat.”

Nonetheless, Zeller warns that, in calculating income, “deductions are at Aave Labs’ sole discretion. No independent audit. No cap. No DAO approval threshold.”

He additionally underlines that the $50 million price of tokens requested represents “31.5% of the entire treasury. For a single service provider. In a single vote.”

Moreover, the extra 75,000 AAVE tokens would additional improve Labs dominance of DAO voting.

AAVE voting energy

Aave Labs isn’t shy about flexing its muscle tissue throughout delicate votes.

In what was branded a “disgraceful” transfer, Labs triggered a shock vote on contributor Ernesto Boado’s proposal over the Christmas holidays.

The proposal was voted down with 55% towards, whereas the vast majority of DAO delegates abstained.

Moreover, Zeller suspects that in the present day’s narrowly-rejected vote on “mandatory disclosures” was, paradoxically, closely influenced by undisclosed Labs-linked wallets.

Forking over one other 75,000 tokens would solely improve Labs’ capacity to swing future votes in its favor.

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