Umair
Aave Labs founder Stani Kulechov has confirmed that no new token will be created for Horizon, Aave’s initiative to integrate real-world assets into decentralized finance.
According to Kulechov’s Mar. 16 post on X, the Aave (AAVE) DAO has reached a clear consensus against launching an additional token for Horizon, and the development team will respect this decision. Horizon was announced on Mar. 13 as a means of integrating RWAs into DeFi while also meeting institutional standards.
The proposal featured a revenue-sharing model and a possible 15% token allocation to the Aave DAO. A new token, according to many in the community, could weaken AAVE’s value and shift focus from its role as the ecosystem’s primary governance and utility asset.
Prominent developers and community members have expressed concerns, suggesting that alternative strategies should be used to generate income and liquidity. Kulechov has responded by stating that Aave Labs would honor the DAO’s position and move forward without issuing a new token.
In addition, he emphasized that the Aave DAO functions as a completely decentralized organization in which community members make governance decisions.
Given that the token proposal had been scrapped, Horizon’s future is still uncertain. The project’s initial goal was to connect DeFi and institutional finance by enabling tokenized money market funds to be pledged as security for stablecoin loans.
It was to be developed as a licensed instance of Aave under the Avara umbrella, ensuring regulatory compliance while preserving DeFi’s efficiency and transparency.
Aave’s prospective 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. The value of on-chain treasuries alone has risen 400% in the past year to $4.26 billion.
Tokenized assets continue to register major investments from leading institutions such as BlackRock. On Mar. 13, BUIDL, BlackRock’s tokenized U.S. Treasury fund, surpassed $1 billion. According to analysts, the RWA market has the potential to grow to $16 trillion in the next decade, highlighting its potential as a major force in global finance.
