Aave Labs founder Stani Kulechov confirmed that there was no plan to offer a new token for Horizon attempt based on Dao’s agreement. Aave Labs suggested that Horizon integrates real world assets into the decentralized finance by targeting institutions. The absence of a new token made the Altcoin community relax.
Aave Labs Founder: There will be no new token for Horizon!
Founding Stani Kulechov said on Sunday, Aave’s Horizon product suggested that a new token will not be created. The company recently proposed Horizon, aiming to integrate real world assets into decentralized finance. A temperature control invited Horizon’s community feedback about the RWA product launch, which will target institutions.
A controversial portion of the proposal suggested that if a token was created, Aave Dao could receive a 15 %allocation as well as regulating income sharing. This led to concerns that a new token could dilute the value of the current Aave token and undermine the focus of Aave as the only governance and assistant token.
The Altcoin community relieved against the decision!
The opposition was so strong that names like Marc Zeller from Aave Chan Initiative made it clear that they would not support the proposal in its current state. Kulechov said that Aave Dao was not interested in bringing additional tokens in X to clarify the situation, and that developers would respect this consensus. In this context, the Zeller said:
The general consensus in Aave Dao is that there is no interest in other tokens. The consensus will be respected; Aave Dao is a real Dao. RWA research will continue when there is a correct approach.
Since then, many community members have been relieved against the decision. They saw the absence of a new token as a positive movement to maintain Aave’s value and benefit. “I’m glad it is, it turned out that Aave was more decentralized than I thought,” Socket Protocol said.
Did Horizon’s distribution risk?
Aave Labs, a part of Avara, developed Aave, the largest decentralized lending protocol. Horizon distribution under the Avara umbrella was proposed as a licensed example of the Aave protocol, ie it will have its own configuration and operational parameters to serve the corporate RWA market. With the removal of the Token plan, it is not clear whether Aave Labs will continue to distribute Horizon.
