AAVE Price Jumps 8% as Aave Moves to Put Protocol IP Under DAO Control

AAVE price surged 8% on Friday after Aave Labs released a new proposal for the foundation to hold protocol intellectual property. Buyers reacted positively to the news about the token, making it jump above $182 and briefly touch $187.50 for the session.

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Aave Foundation Proposal Targets Protocol IP

According to the Aave CEO, the Aave Foundation proposal would create a memberless Cayman Islands foundation company. It would be the holder of the Aave trademark and related trademarks and intellectual property for the protocol.

The entity may also hold primary domains and assigned intellectual property rights with service providers. Phase 1 applies to incorporation and appointments of an independent director and supervisor only.

Further governance proposals and approvals would be required for trademark, domain, and codebase transfer. In this stage, reasonable incorporation, legal, secretary, and appointment fees would be paid by the DAO.

According to Aave founder Stani Kulechov, the goal of the plan was to hand over Aave IP to the DAO. He said it would strengthen Aave by “unifying everything under one asset, AAVE.” This proposal is part of the larger Aave Will Win framework.

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DAO Would Retain Control Over Protocol Decisions

The planned foundation would not be given a vote, veto, or advisory role in normal protocol governance. Any listings, any parameter changes, any budgets, any providers, and any framework changes would continue to be decisions made by AAVE tokenholders.

The DAO could appoint or remove directors through an Aave Improvement Proposal. In addition, it would also have a binding effect on major constitutional changes, key IP sales, restructuring, and a future winding-up.

The foundation would also release quarterly reports on assets, expenditures, and legal proceedings. The reporting structure would be established to regularly inform governance of assets under the entity.

The proposal comes alongside other recent changes to the protocol. As we reported, Aave V4 recently expanded on Base with a tokenized equities lending market. Due to that, seven Coinbase-issued stock tokens can serve as collateral for USDC loans outside the United States.

AAVE Price Extends Rally as Governance Activity Builds

Following the news, AAVE touched an intraday high of nearly $187.50 after starting around $171. The rally saw the short liquidations total about $350,000 across three key exchanges in one strong hourly swing.

The token has also been mentioned in recent talks about Aavenomics 3.0. While no formal proposal has been approved yet, a permanent AAVE burn mechanism is being discussed, Kulechov said.

The discussion follows recent SEC staff guidance on crypto buybacks on functional networks. Staff emphasized that buybacks are not “automatic and inherent” parts of the essential nature of managerial activity under federal securities law.

Prior to the creation of any entity, the Foundation proposal needs to go through the Aave governance process. If consensus forms, it would proceed to Snapshot and then an AIP for incorporation costs. Later phases would separately cover transfers of trademarks, domains, and codebase intellectual property.