Network News
AAVE COMMUNITY DIVISION: Aave community members and participants have become sharply divided in recent weeks over control of the protocol’s brand and associated assets, intensifying an ongoing dispute over the relationship between the decentralized autonomous organization (DAO) and Aave Labs, the centralized development company that builds much of Aave’s technology. The debate has attracted considerable attention because it touches on a central issue facing many of crypto’s largest protocols: the tension between decentralized governance and the centralized teams that often drive execution. As protocols evolve and brands become more valuable, it becomes increasingly difficult to ignore the question of who ultimately controls these assets, the token holders or the builders. The dispute was sparked by Aave’s integration of CoW Swap, a trade execution tool, which resulted in swap fees being transferred to Aave Labs rather than the DAO Treasury. While Labs claimed the revenue reflected development work at the interface level, critics said the deal exposed a deeper issue: who ultimately controls the Aave brand, which has more than $33 billion locked up in its network. This question is now at the heart of the debate over ownership of Aave’s brands, domains, social accounts and other brand assets. Proponents of DAO control argue that the proposal would align governance rights with those who bear economic risk, limit unilateral control of a private company, and ensure that the Aave brand reflects a protocol governed and funded by token holders rather than a single builder. Those who support the laboratory take the position that removing control of the brand from manufacturers could slow development, complicate partnerships and blur responsibility for managing and promoting the protocol. The proposal has deeply divided community members, with opponents and supporters offering very different visions for Aave’s future. — Margaux Nijkerk & Shaurya Malwa Learn more.
PREPARING ETHEREUM GLAMSTERDAM: Ethereum developers, fresh off last month’s successful Fusaka upgrade that reduced node costs, are already moving full steam ahead in planning the blockchain’s next major change. Enter “Glamsterdam”. The name is a portmanteau of two simultaneous upgrades taking place on Ethereum’s two core layers. The execution layer, where transaction rules and smart contracts reside, will undergo the Amsterdam upgrade, while the consensus layer, which coordinates validators and finalizes blocks, will see an upgrade known as Gloas. At the heart of Glamsterdam is the Proposer-Builder Separation (ePBS), officially tracked as EIP-7732. The proposal would build into Ethereum’s core protocol a rule that separates nodes that build blocks from those that offer them, preventing a single actor from controlling which transactions are included or how they are ordered. Today, this separation relies largely on off-chain services called relays, which introduce trust assumptions and centralization risks. Under ePBS, block builders would assemble blocks and cryptographically seal their contents, while nominators would simply choose the highest-yielding block without being able to see or tamper with what it contains. Transactions would only be revealed once the block is finalized, reducing opportunities for manipulation and abuse related to MEV, or maximum extractable value – the additional profits that validators or constructors can make by rearranging, inserting or censoring transactions. — Margaux Nijkerk Learn more.
BITCOIN AND QUANTUM COMPUTING: Some Bitcoin developers are no longer wondering whether quantum computing will break the network, but are letting onlookers know how much time it would take to prepare if that ever happens. This shift was crystallized this week by longtime Bitcoin developer Jameson Lopp, who said that while quantum computers are unlikely to threaten Bitcoin anytime soon, any significant defensive changes could take much longer than many think. “No, quantum computers will not break Bitcoin in the near future,” Lopp posted. “We will continue to observe their progress. Yet making thoughtful changes to the protocol (and unprecedented migration of funds) could easily take 5-10 years.” The discussion is important because the value of Bitcoin increasingly depends on long-term trust. As more institutional capital treats bitcoin as a multi-year holding, even remote technical risks can influence allocation decisions and shape how markets price uncertainty, as CoinDesk reported Saturday. — Shaurya Malwa Learn more.
PROPOSAL FOR CLEAN GOVERNANCE: The basis of the takeover protocol, EigenLayer, proposed a governance change to introduce new incentives for the EIGEN token, focusing on productive network activity and fee generation. As part of the plan outlined in a recent blog post, the cornerstone of the proposal is the introduction of a fee model that channels revenue from Actively Validated Services (AVS) and EigenCloud Services rewards to EIGEN holders. AVS are blockchain-based services that use EigenLayer security, relying on staked tokens and operators to ensure honest and correct operation. The team says this change will strengthen long-term value accumulation for EIGEN token holders and better align the token economics with real-world usage of EigenLayer’s network. “This approach aligns incentives across the ecosystem: stakeholders and operators supporting active services earn more, AVSs get the capital they need, and EIGEN benefits from improved tokenomics,” according to the blog post. – Margaux Nijkerk Learn more.
In Other news
- Upexi (UPXI), a Nasdaq-listed crypto treasury company focused on Solana, has filed to raise $1 billion in pre-registration with the U.S. Securities and Exchange Commission (SEC). The move gives the company the flexibility to raise capital by selling common stock, preferred stock, debt securities, warrants or units in one or more offerings over time. Headquartered in Tampa, Florida, Upexi manages a number of consumer brands, including Cure Mushrooms medical products and Lucky Tail pet care. It also manages the fourth largest SOL treasury of any public company, with over 2 million tokens ($248 million) on its balance sheet. — Francesco Rodrigues Learn more.
- The International Monetary Fund (IMF) welcomed El Salvador’s stronger-than-expected economic growth in a statement. The update notably did not include previous IMF suggestions that El Salvador shelve its bitcoin accumulation strategy, something that country – under President Nayib Bukele – has continued to do since negotiating an IMF loan program several months ago. Deviating from its normal strategy of adding bitcoin per day, El Salvador in November added more than 1,000 BTC to its national treasury strategy amid that month’s strong sell-off. The government has now accumulated almost 7,500 BTC, worth around $660 million at current prices. The IMF noted that negotiations for the sale of the Chivo government crypto wallet are “well advanced.” “Discussions regarding the Bitcoin project continue, focused on improving transparency, safeguarding public resources and mitigating risks,” the agency added. Olivier Acuna Learn more.
Regulation and policy
- The central bank of Russia has presented a proposed framework that would legalize and regulate cryptocurrency trading for individuals and institutions, continuing its easing towards cryptocurrencies. However, he continues to warn that investing in crypto carries risks, including potential losses. “They are not issued or guaranteed by any jurisdiction and are subject to increased risks of volatility and sanctions,” the central bank’s press release said. “When deciding to invest in crypto assets, investors should understand that they are assuming the risk of potential loss of their funds.” The central bank also stated that “digital currencies and stablecoins are recognized as monetary assets; they can be bought and sold, but they cannot be used for domestic payments.” — Olivier Acuna Learn more.
- The Council of the European Union, an EU body that changes legislation and commits national governments to adopting the bloc’s laws, said it supports the European Central Bank’s plan to explore an official digital currency, calling it an evolution of currency and a tool for financial inclusion. In an article published on its website, however, the Council said the ECB will need to set limits on the total value that can be held at any time in online accounts and digital wallets to “avoid the digital euro being used as a store of value” and prevent it from having an impact on financial stability. “Holding limits are not just about abstract financial stability,” Edwin Mata, co-founder and CEO of tokenization platform Bricken, told CoinDesk. “They aim to prevent the digital euro from competing directly with bank deposits. If people could hold an unlimited number of digital euros, deposits could flow instantly from commercial banks to the ECB, particularly during times of stress, thereby accelerating bank runs.” — Olivier Acuna Learn more.
Calendar
- February 10-12, 2026: Consensus, Hong Kong
- February 17-21, 2026: EthDenver, Denver
- March 30-April. 2, 2026: EthCC, Cannes
- April 15-16, 2026: Paris Blockchain Week, Paris
- May 5-7, 2026: Consensus, Miami
- November 3-6, 2026: Devcon, Mumbai
