Aave Labs founder Stani Kulechov has confirmed no new token will be launched for Horizon following a clear consensus within the Aave DAO.
Aave DAO's Decision
On March 16, Stani Kulechov announced that the DAO had overwhelmingly rejected the idea of launching an additional token. Concerns were raised that a new token could dilute AAVE’s value and divert attention from its role as the ecosystem’s core governance and utility asset.
Goals and Future of Horizon Project
Horizon, introduced on March 13, aims to connect decentralized finance (DeFi) with institutional finance by allowing tokenized money market funds as collateral for stablecoin loans. Developed under Avara for regulatory compliance, while the token proposal was withdrawn, the RWA initiative will continue as alternatives are explored.
Real-World Asset Market Trends
Aave's involvement in real-world assets (RWA) reflects a growing trend, as the on-chain RWA market increased by 19% to $18.63 billion. The value of tokenized treasuries has risen 400% to $4.26 billion. Major institutions, including BlackRock, are deepening their involvement. Analysts project the RWA market could reach $16 trillion over the next decade.
Aave continues to explore alternative approaches to achieve its goals within the RWA initiative, reaffirming its commitment to decentralization and community-driven decision-making.
