Horizon Aave: A New Tokenless Innovation that’s Taking the Industry by Storm

Jakarta, Pintu News – The recent announcement from Stani Kulechov, founder of Aave Labs (AAVE), about the Horizon initiative has caught the attention of many. Kulechov confirmed that there will be no new tokens introduced for the Horizon initiative, which has gained consensus from the Aave DAO. This decision comes amid a heated debate regarding Horizon’s proposal that aims to develop institutional Decentralized Finance (DeFi) products.

Decision Without New Tokens

In a post on X on March 16, Kulechov explained that there are no plans to launch a new token alongside Horizon. This was in response to a growing discussion in the community regarding the potential launch of a Real World Asset (RWA) product by Horizon. Previously, it was suggested that the Aave DAO might get a 15% allocation if a new token was created, which raised concerns among industry experts.

Experts expressed concerns that the new token could reduce the value of existing AAVE assets. They argued that the new token would diminish AAVE’s role as a single governance and utility token. Marc Zeller, one of the industry observers, even stated that he would not support the proposal and asked the Aave community to join the discussion.

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Aave Labs’ Vision for Horizon

The Horizon initiative, developed by Aave Labs, aims to launch RWA products as licensed instances of the protocol. Horizon is designed with separate configuration and operational parameters to serve the institutional RWA market. The initiative is expected to open a compliant, scalable, and accessible path for institutions and tokenization platforms to engage in DeFi.

Aave Labs hopes that Horizon will help position the platform as a leader in the RWA space and as the preferred liquidity layer and infrastructure for institutional DeFi. Additionally, Horizon will allow institutions to use tokenized Money Market Funds (MMFs) as collateral to borrow US Dollar Coin (USDC) and GHO at scale. However, with the token plans now scrapped, it remains unclear whether Aave Labs will proceed with the launch of Horizon.

Community Response and Next Steps

The Aave community welcomed the announcement from Kulechov with enthusiasm, praising the Aave DAO for its intervention. A user by the name of @Kiryu_0x was one of many who made positive comments. Kulechov confirmed that RWA exploration will continue once suitable techniques are found, demonstrating Aave Labs’ commitment to continue innovating without compromising the value of existing assets.

With this decision, Aave Labs demonstrates its commitment to transparency and community-driven decisions. The next steps for Horizon are still under review, but the main focus remains on developing solutions that can support the growth of institutional DeFi without the need to create new tokens that could confuse the market.

Conclusion

Aave Labs’ decision not to launch new tokens within the Horizon initiative demonstrates a mature and responsible approach to managing the DeFi ecosystem. This move not only avoids splitting the community but also strengthens the value of the existing AAVE tokens. With a focus on innovation and compliance, Aave Labs continues to lead the way in providing secure and inclusive DeFi solutions for all users.

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Reference

• Crypto News Flash. Aave Says No New Token for Horizon. Accessed on March 18, 2025
• Featured Image: Beamstart