Aave Labs Confirms No New Token for Horizon Project
Aave Labs founder Stani Kulechov announced that Horizon, Aave’s initiative to integrate real-world assets (RWAs) into decentralized finance (DeFi), will not have a new token. In a recent post on X, Kulechov stated that the Aave (AAVE) DAO has decided against launching an additional token for Horizon.
Horizon aims to bring RWAs into DeFi while meeting institutional standards.The community showed no interest in a new token, fearing it might weaken AAVE’s value.The Aave DAO, a decentralized institution, will respect this decision. The project’s goal is to connect defi and institutional finance by enabling tokenized money market funds as collateral for stablecoin loans.
The proposal included a revenue-sharing model and a possible 15% token allocation to the Aave DAO.Many community members were concerned that a new token could shift focus from AAVE’s role as the primary governance and utility asset. Kulechov emphasized that Aave Labs will honor the DAO’s position and move forward without issuing a new token. The project’s future remains uncertain, but RWA exploration will continue.
Horizon was announced on March 13. It was to be developed as a licensed instance of Aave under the Avara umbrella, ensuring regulatory compliance while preserving DeFi’s efficiency and openness. The Aave DAO functions as a fully decentralized organization.
Horizon’s future is still uncertain, but the project’s initial goal was to connect DeFi and institutional finance. Aave’s entry into RWAs aligns with the industry’s explosive growth. According to data from RWA.xyz, the on-chain RWA value increased 19% in the last month to $18.63 billion.
Tokenized assets continue to register major investments from leading institutions such as BlackRock. On March 13, BUIDL, BlackRock’s tokenized U.S. Treasury fund, surpassed $1 billion. Analysts predict the RWA market could grow to $16 trillion in the next decade.
- Horizon will not have a new token.
- Aave’s entry into RWAs aligns with the industry’s explosive growth.
- The RWA market has the potential to grow to $16 trillion in the next decade.
