PANews reported on March 17 that, according to The Block, Aave Labs founder Stani Kulechov clarified on Sunday that they will not create a new token for Aave's proposed product Horizon.
The company recently proposed Horizon, which aims to integrate real-world assets into decentralized finance, sparking debate in the Aave community. A temperature check invited the community to provide feedback on Horizon's RWA product release for institutions. The controversial part of the proposal indicated that if a token were created, the Aave DAO could receive a 15% allocation and revenue sharing arrangement. This raised concerns that a new token could dilute the value of the existing AAVE token and undermine AAVE's focus as the sole governance and utility token. The opposition was so strong that Marc Zeller of the Aave Chan Initiative publicly stated that he would not support the proposal in its current form. Kulechov clarified the situation to X, stating that the Aave DAO is not interested in introducing additional tokens, and the developers will respect this consensus. Due to the cancellation of the token plans, it is currently unclear whether Aave Labs will proceed with the deployment of Horizon.
