Network News
DIVISION OF THE AAVE COMMUNITY: Aave community members and participants have become sharply divided in recent weeks over control of the protocol’s brand and related assets, escalating 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 enormous attention because it touches on a central issue facing many of the largest cryptocurrency protocols: the tension between decentralized governance and the centralized teams that often drive execution. As protocols grow and brands accumulate value, questions about who ultimately controls those assets – token holders or builders – become harder to ignore. The dispute was sparked by Aave’s integration of CoW Swap, a trade execution tool, which resulted in swap fees flowing into Aave Labs instead of the DAO treasury. While Labs argued that the revenue reflected development work at the front-end level, critics said the deal exposed a deeper issue: who ultimately controls the Aave brand, which has more than $33 billion locked in its network. That question has now become central to the debate over ownership of Aave’s trademarks, domains, social accounts and other brand assets. Supporters of DAO control argue that the proposal would align governance rights with those who bear economic risk, limit unilateral control by 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 lab taking that position respond that taking control of the brand away from developers could slow development, complicate partnerships and blur responsibility for executing and promoting the protocol. The proposal has deeply divided community members, with opponents and supporters offering starkly different visions for Aave’s future. — Margaux Nijkerk and Shaurya Malwa Read more.
ETHEREUM GLAMSTERDAM PREPARATION: Ethereum developers, fresh off last month’s successful Fusaka upgrade that lowered node costs, are already full steam ahead planning the blockchain’s next major change. Enter “Glamsterdam.” The name is an acronym for two simultaneous updates that take place on the two core layers of Ethereum. The execution layer, where transaction rules and smart contracts reside, will undergo the Amsterdam update, while the consensus layer, which coordinates validators and finalizes blocks, will see an update known as Gloas. Enshrined in the heart of Glamsterdam is the Proposer-Builder Separation (ePBS), formally tracked as EIP-7732. The proposal would include in Ethereum’s core protocol a rule that separates the nodes that build blocks from those that propose them, preventing a single actor from controlling which transactions are included or how they are ordered. Today, this separation relies heavily on off-chain services known as relays, which introduces trust assumptions and centralization risks. Under ePBS, block builders would assemble blocks and cryptographically seal their contents, while proponents would simply choose the highest-paying block without being able to see or alter what’s inside. Transactions would only be revealed after the block is finalized, reducing opportunities for manipulation and abuse related to MEV, or maximum extractable value – the additional profits that validators or builders can make by reordering, inserting or censoring transactions. — Margaux Nijkerk Read more.
BITCOIN AND QUANTUM COMPUTING: Some Bitcoin developers are no longer arguing about whether quantum computing will break the network, but are instead telling viewers how long it would take to prepare if it ever did. That shift was crystallized this week by veteran Bitcoin developer Jameson Lopp, who said that while quantum computers are unlikely to threaten Bitcoin anytime soon, any significant defensive shift could take much longer than many assume. “No, quantum computers will not break Bitcoin anytime soon,” Lopp posted. “We will continue to watch its evolution. However, making thoughtful changes to the protocol (and unprecedented fund migration) could easily take 5-10 years.” The discussion is important because Bitcoin’s value increasingly depends on long-term trust. As more institutional capital treats Bitcoin as a multi-year holding, even distant technical risks can influence allocation decisions and shape how markets price uncertainty, as CoinDesk reported on Saturday. — Shaurya Malwa Read more.
EIGENLAYER GOVERNANCE PROPOSAL: The foundation behind the EigenLayer recovery protocol has proposed a governance change to introduce new incentives for the EIGEN token, focusing on productive network activity and fee generation. According to the plan outlined in a recent blog post, a cornerstone of the proposal is the introduction of a fee model that channels revenue from Actively Validated Services (AVS) rewards and EigenCloud services to EIGEN holders. AVS are blockchain-based services that use EigenLayer security, relying on staked tokens and operators to keep it running honestly and correctly. The team maintains that this change will strengthen long-term value accumulation for EIGEN token holders and better align the economics of the tokens with the actual use of the EigenLayer network. “This approach aligns incentives across the ecosystem: participants and operators supporting active services earn more, AVS get the capital they need, and EIGEN benefits from improved tokenomics,” according to the blog post. – Margaux Nijkerk Read more.
In other news
- Upexi (UPXI), a Nasdaq-listed crypto treasury company focused on solana, filed to raise up to $1 billion in a shelf registration with the US Securities and Exchange Commission (SEC). The move provides the company the flexibility to raise capital by selling common stock, preferred stock, debt instruments, warrants or units in one or more offerings over time. Headquartered in Tampa, Florida, Upexi manages several consumer brands, including Cure Mushrooms medicinal 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. — Francisco Rodrigues Read more.
- The International Monetary Fund (IMF) praised in a statement the economic growth of El Salvador, greater than expected. Notably, the update did not include earlier suggestions from the IMF that El Salvador would suspend its strategy of accumulating bitcoins, something that country, under the leadership of President Nayib Bukele, has continued to do since negotiating an IMF loan package several months ago. Deviating from its normal strategy of adding bitcoins per day, El Salvador in November added more than 1,000 BTC to its national treasury strategy amid that month’s sharp sell-off. The government has now accumulated almost 7,500 BTC worth about $660 million at current prices. The IMF noted that negotiations for the sale of the government crypto wallet Chivo are “very advanced.” “Discussions continue regarding the Bitcoin project, focused on improving transparency, safeguarding public resources and mitigating risks,” the agency added. Olivier Acuña Read more.
Regulation and policy
- Russia’s central bank unveiled a proposed framework that would legalize and regulate cryptocurrency trading for both individuals and institutions, continuing its softening stance toward cryptocurrencies. However, he goes on to warn that investing in cryptocurrencies carries risks, including potential losses. “They are not issued or guaranteed by any jurisdiction and are subject to increased volatility and sanctions risks,” the central bank’s press release said. “When deciding to invest in crypto assets, investors should understand that they assume the risk of a possible loss of their funds.” The central bank also said that “digital currencies and stablecoins are recognized as monetary assets; they can be bought and sold, but cannot be used for internal payments.” — Olivier Acuna Read more.
- The Council of the European Union, an EU body that modifies legislation and commits national governments to adopt the bloc’s laws, said it backs the European Central Bank’s plan to explore an official digital currency, calling it an evolution of money and a tool for financial inclusion. However, in a post on its website, the Council said the ECB will need to set limits on the total value that can be held in online accounts and digital wallets at any time to “prevent the digital euro from being used as a store of value” to prevent it from having any 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. “This is about preventing the digital euro from competing directly with bank deposits. If people could hold unlimited digital euros, deposits could instantly move from commercial banks to the ECB, especially during periods of stress, effectively accelerating bank runs.” — Olivier Acuna Read more.
Calendar
- February 10-12, 2026: Consensus, Hong Kong
- February 17-21, 2026: EthDenver, Denver
- From March 30 to April 30. 2, 2026: EthCC, Cannes
- April 15-16, 2026: Paris Blockchain Week, Paris
- May 5-7, 2026: Consensus, Miami
- November 3-6, 2026: Devcon, Mumbai
