AAVE token holders have proposed that the DAO adopt a "poison pill" plan to acquire Aave Labs, further escalating the revenue-sharing dispute.

PANews reported on December 17th that, according to The Block, an Aave DAO participant has questioned whether the relationship between the Aave protocol, the DAO, and Aave Labs needs to be reassessed. User tulipking proposed in a recent governance forum post that the Aave DAO should seize control of Aave Labs' intellectual property (including its released code and trademarks) and company equity by filing a "poison pill" lawsuit. This move aims to replace control of the lending protocol and solidify ownership for all AAVE token holders. This "declaration of sovereignty" marks a further escalation of the ongoing debate among Aave community members regarding how protocol revenue should be distributed and which organization will ultimately control Aave.

In his proposal, tulipking wrote: “This is a defensive ‘poison pill’ designed to protect the DAO from centralized control and ensure that all value flows back to AAVE holders. Aave Labs has effectively privatized assets that should belong to the community by monetizing the Aave brand, frontend, and user base without the DAO’s approval. If Labs is unwilling to voluntarily share revenue and control, then the DAO must take everything back.” In addition to gaining complete control of Aave’s intellectual property, tulipking also proposed to take back “all past revenue generated by Aave Labs from Aave-branded products” and take over the company’s equity, essentially “transforming Aave Labs into a wholly owned subsidiary of the DAO.”

Related reading: Annual revenue losses of tens of millions spark governance controversy; Aave Labs accused of "backstabbing" the DAO.