Aave Labs founder Stani Kulechov confirmed that based on DAO consensus, there is no plan to introduce a new token for the Horizon initiative.
Aave's Horizon Proposal
Aave Labs proposed integrating real-world assets into decentralized finance through the Horizon initiative, targeting institutional clients. A recent temperature check gathered community feedback on the product's launch targeting institutions.
Reasons for No New Token
The proposal suggested a potential 15% allocation for Aave DAO and a revenue-sharing setup if a new token were created. However, this led to concerns over diluting the value of the current AAVE token. In response, Kulechov clarified that DAO had no interest in additional tokens, and developers would respect this consensus.
Community Reaction and Horizon's Future
Several community members have expressed relief at the decision, viewing it positively for protecting the value and utility of AAVE. Lito Coen of Socket Protocol noted his pleasant surprise at Aave's level of decentralization. It remains unclear whether Aave Labs will proceed with Horizon deployment without the new token.
The decision by Aave Labs to forgo a new token for Horizon has been welcomed by the community, with future developments hinging on alignment with DAO interests.
