Aave Labs founder Stani Kulechov confirmed that no new token will be created for the Horizon initiative, based on the consensus of the Aave DAO.
Aave DAO's Decision
In a post on X dated March 16, Kulechov highlighted that the Aave DAO reached a consensus against launching a new token for Horizon. Community members expressed concerns that a new token could undermine AAVE's value. Aave Labs respects this decision and will proceed without issuing any new tokens.
Impact on the Horizon Project
The absence of a new token leaves Horizon's future uncertain. The project initially aimed to bridge DeFi with institutional finance by collateralizing tokenized money market funds. Horizon was to be developed as a licensed instance of Aave under the Avara umbrella.
Real-World Asset Market Growth
Aave's entrance into the real-world assets sector aligns with the industry's growth trend. According to data from RWA.xyz, the value of on-chain real-world assets increased 19% over the past month to $18.63 billion. Analysts project that the market could reach $16 trillion in the next decade, highlighting its potential in global finance.
Aave's decision against a new token for Horizon showcases the company's commitment to community opinion. The real-world asset market continues to grow, offering significant opportunities for integration with DeFi.
