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      Aave Labs Proposes Cayman Foundation for Aave Brand and IP Management

      Aave Labs has submitted a governance proposal to establish a new legal entity in the Cayman Islands, aimed at managing the Aave brand and intellectual property on behalf of the Aave Decentralized Autonomous Organization (DAO). The proposal, titled "[ARFC] The Aave Foundation, Phase 1," was presented on October 2, 2026, and seeks to create a memberless foundation that would eventually hold legal title to the Aave trademark, primary domains, and protocol codebase intellectual property.

      Phase 1 of the proposal focuses on the incorporation of the foundation and the appointment of independent officers, without transferring any trademarks or domains at this stage. The actual transfer of assets will require separate governance votes in the future, ensuring that the DAO retains control over key decisions related to the Aave Protocol. Aave Labs and its affiliates will not hold any roles within the foundation, which is designed to protect and license the intellectual property while allowing the DAO to maintain authority over protocol governance.

      This initiative follows the commitments made in the February 2026 "Aave Will Win Framework," which aimed to create a secure, community-backed structure for managing the Aave brand. The proposal comes amid ongoing tensions between Aave Labs and the DAO regarding revenue flows and asset management, particularly highlighted by disputes over frontend swap fees and calls for increased DAO control.

      If approved, the foundation could significantly alter the management of the Aave brand, allowing the DAO to have a formal role in licensing and utilizing the Aave name and assets. The proposal includes provisions for quarterly reports to ensure transparency regarding the foundation's activities and assets, setting a baseline expectation for accountability as the process moves forward.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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