{"id":17878,"date":"2025-03-18T23:47:46","date_gmt":"2025-03-18T23:47:46","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=17878"},"modified":"2025-03-18T23:47:46","modified_gmt":"2025-03-18T23:47:46","slug":"aave-dao-rejects-plans-for-a-new-rwa-token-heres-what-it-means","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=17878","title":{"rendered":"Aave DAO Rejects Plans for a New RWA Token: Here\u2019s What It Means"},"content":{"rendered":"<div>\n<p><span data-preserver-spaces=\"true\">The Aave DAO, the decentralized autonomous organization overseeing Aave\u2014one of the largest DeFi dapps in the world\u2014has rejected a proposal to create a new token for Horizon, a real-world asset (RWA) tokenization project proposed by Aave Labs, the development team behind the DeFi protocol.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">In a post on X, Aave founder Stani Kulechov confirmed that no new token will be created for the RWA project following strong <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/governance.aave.com\/t\/temp-check-building-horizon-s-rwa-product-an-aave-licensed-instance-for-institutions\/21384\" target=\"_blank\" rel=\"noopener nofollow\"><span data-preserver-spaces=\"true\">opposition<\/span><\/a><span data-preserver-spaces=\"true\"> from the community.<\/span><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Overall consensus across the Aave DAO is that there is no interest on other tokens. The consensus will be respected, Aave DAO is a real DAO. RWA exploration will continue once a right approach is found.<\/p>\n<p>There is only <a href=\"https:\/\/twitter.com\/search?q=%24AAVE&amp;src=ctag&amp;ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"nofollow\">$AAVE<\/a>. <a href=\"https:\/\/t.co\/tQSb51gmvw\" target=\"_blank\" rel=\"nofollow\">pic.twitter.com\/tQSb51gmvw<\/a><\/p>\n<p>\u2014 Stani.eth (@StaniKulechov) <a href=\"https:\/\/twitter.com\/StaniKulechov\/status\/1901090678123176216?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"nofollow\">March 16, 2025<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p><span data-preserver-spaces=\"true\">The opposition to the new token and its active involvement marks a key moment in decentralized governance. This highlights that, despite a perceived decline in focus on DAO systems, some projects still value community input, perfectly aligning with the principles of the blockchain.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Most importantly, the idea failed at the \u201cTemp Check\u201d stage, where proposals are first discussed among token holders before proceeding to the next stage, Aave Request for Final Comments (ARFC), for refinement. <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Later, the proposal is usually finalized as an Aave Improvement Proposal (AIP) before the community votes to either pass or reject it.<\/span><\/p>\n<h2><strong><span data-preserver-spaces=\"true\">Aave DAO Rejects Creation of a New RWA Token: <\/span><\/strong><strong><span data-preserver-spaces=\"true\">What Is Horizon Crypto?<\/span><\/strong><\/h2>\n<p><span data-preserver-spaces=\"true\">Horizon is an Aave project that seeks to bridge the potentially multi-trillion-dollar RWA tokenization sector with DeFi, creating products tailored for institutions.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Specifically, Horizon allows institutions to use tokenized money market funds as collateral if they wish to borrow USDC or GHO stablecoins. It will initially run on Aave v3 but is planned to migrate to v4 later.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The community was expected to discuss the profit distribution system, which would allocate 50% of revenue to the Aave DAO in the first year, decreasing to 10% after four years.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Additionally, the community needed to address the issuance of a new governance token, an idea that immediately sparked controversy among Aave community members and AAVE holders.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Concerns arose that launching a new governance token would undermine the utility of the OG token, which serves as the governance token and is already one of the <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/99bitcoins.com\/cryptocurrency\/best-crypto-to-buy\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">best cryptos to buy in 2025<\/span><\/a><span data-preserver-spaces=\"true\">.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">With a new Horizon token, it was highly likely that AAVE\u2019s role in the Aave ecosystem would be weakened, shifting focus away from the existing ecosystem.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Moreover, there were concerns that the new token would introduce unnecessary complexities, potentially shifting decision-making power away from AAVE holders.<\/span><\/p>\n<h2><strong><span data-preserver-spaces=\"true\">What\u2019s Next?<\/span><\/strong><\/h2>\n<p><span data-preserver-spaces=\"true\">While the idea of a new token was rejected, Aave is still proceeding with its original plan to create a new RWA project targeting institutions.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">This push is bullish for the tokenization sector, where billions of dollars are already on-chain, trading primarily on Ethereum, Tron, and Polygon. There are even more on Solana, a platform hosting some of the <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/99bitcoins.com\/cryptocurrency\/high-risk-high-reward-crypto\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">best high-risk, high-reward cryptos to buy in 2025<\/span><\/a><span data-preserver-spaces=\"true\">.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">For example, Tether, the issuer of USDT, has minted over $143 billion worth of tokens across multiple chains. In total, <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.coingecko.com\/en\/categories\/stablecoins\" target=\"_blank\" rel=\"noopener nofollow\"><span data-preserver-spaces=\"true\">over $235 billion<\/span><\/a><span data-preserver-spaces=\"true\"> worth of stablecoins have been issued by various projects, according to Coingecko data.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Meanwhile, according to <\/span><span data-preserver-spaces=\"true\">rwa.xyz<\/span><span data-preserver-spaces=\"true\">, over $18.6 billion worth of RWAs have been tokenized, with most of these tokens backed by U.S. Treasuries. <\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-216192 size-full\" src=\"https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/03\/Screenshot-2025-03-17T170233.170.png\" alt=\"The Aave DAO rejected a new token for the Horizon RWA project, prioritizing AAVE's value and decentralized governance\" width=\"1670\" height=\"694\" srcset=\"https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/03\/Screenshot-2025-03-17T170233.170.png 1670w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/03\/Screenshot-2025-03-17T170233.170-300x125.png 300w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/03\/Screenshot-2025-03-17T170233.170-1024x426.png 1024w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/03\/Screenshot-2025-03-17T170233.170-768x319.png 768w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/03\/Screenshot-2025-03-17T170233.170-1536x638.png 1536w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/03\/Screenshot-2025-03-17T170233.170-50x21.png 50w\" sizes=\"auto, (max-width: 1670px) 100vw, 1670px\"><\/p>\n<p>(<a class=\"general-link\" href=\"https:\/\/app.rwa.xyz\/\" target=\"_blank\" rel=\"noopener nofollow\">Source<\/a>)<\/p>\n<p><span data-preserver-spaces=\"true\">One of the leading platforms is Ondo, which also <a class=\"general-link\" title=\"ONDO Finance Will Bring Wall Street On-Chain: Everything to Know About New RWA Platform\" href=\"https:\/\/99bitcoins.com\/news\/ondo-finance-will-bring-wall-street-on-chain-everything-to-know-about-new-rwa-platform\/\" rel=\"\">launched<\/a> Ondo Chain in February. Like Horizon, Ondo Chain aims to integrate DeFi with RWAs, targeting institutions while complying with existing laws. Its token, ONDO, analysts say, is among the <a class=\"general-link\" href=\"https:\/\/99bitcoins.com\/cryptocurrency\/new-cryptocurrency\/\" target=\"_blank\" rel=\"noopener\">best new cryptocurrencies to consider investing in 2025<\/a>.<\/span><\/p>\n<div class=\"nnbtc-key-takeaways\">\n<h3 class=\"nnbtc-key-takeaways__title\">Key Takeaways<\/h3>\n<ul class=\"nnbtc-key-takeaways__list\">\n<li class=\"nnbtc-key-takeaways__list-item\">\n         <span data-preserver-spaces=\"true\">Aave DAO rejected the Horizon token due to community opposition, protecting AAVE\u2019s role<\/span><span data-preserver-spaces=\"true\">\u00a0<\/span>    <\/li>\n<li class=\"nnbtc-key-takeaways__list-item\">\n         <span data-preserver-spaces=\"true\">Horizon aims to integrate RWAs into DeFi, targeting institutions with tokenized money market funds<\/span>\u00a0    <\/li>\n<li class=\"nnbtc-key-takeaways__list-item\">\n         <span data-preserver-spaces=\"true\">Despite the rejection, Aave continues RWA development, aligning with the growing multi-billion tokenization sector<\/span>\u00a0    <\/li>\n<\/ul><\/div>\n<p>The post <a href=\"https:\/\/99bitcoins.com\/news\/altcoins\/aave-dao-rejects-plans-for-a-new-rwa-token-heres-what-it-means\/\">Aave DAO Rejects Plans for a New RWA Token: Here\u2019s What It Means<\/a> appeared first on <a href=\"https:\/\/99bitcoins.com\/\">99Bitcoins<\/a>.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The Aave DAO, the decentralized autonomous organization overseeing Aave\u2014one of the largest DeFi dapps in the world\u2014has rejected a proposal to create a new token for Horizon, a real-world asset (RWA) tokenization project proposed by Aave Labs, the development team behind the DeFi protocol. In a post on X, Aave founder Stani Kulechov confirmed that [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-17878","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/17878","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=17878"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/17878\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17878"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17878"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17878"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}