The Aave DAO has spoken: there will be no new token.

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The Aave DAO has shot down the creation of a new token, a move that comes after discussion on how a new token could potentially help to accelerate revenue growth through liquidity bootstrapping.

Why Aave DAO Rejected A New Token

Announcing the rejection of a new token, Aave founder Stani Kulechov made it clear that the team respects the DAO’s decision and will not push any initiative that lacks strong community backing.

“Overall consensus across the Aave DAO is that there is no interest in other tokens. The team respects this decision and will not push any initiative that lacks strong community backing,” Kulechov stated.

He added:“We are grateful for the community's participation in the discussion and will continue to engage in open dialogue about the best way to grow the Aave ecosystem.”

Clarifications Around Horizon Token

Analyst Mika Honkasalo brought up the issue of AAVE holders naturally expecting future earnings from any new product to be paid out to them.

He likened the situation to a company issuing new equity for a separate product, which can confuse investors about the true value being built.

“This point of view is not necessarily wrong. It's just a different way of looking at things, which can lead to misunderstandings and complicate matters unnecessarily,” Honkasalo stated.

Kulechov clarified that the proposed Horizon token is not an Aave initiative but rather a separate project by Avara, which aims to acquire a tech license to use Aave’s infrastructure for part of its business.

He acknowledged that there was a gap in expectations but reassured the community that Aave’s focus remains on growing its ecosystem while respecting DAO governance.

“We are committed to finding the right way to integrate RWAs into the Aave ecosystem without compromising decentralization or governance principles, which are crucial to the Aave protocol and community.”

Real-World Asset (RWA) Strategy to Continue

While the rejection of a new token is final, Aave remains committed to exploring Real-World Assets (RWAs) as a revenue stream.

Kulechov highlighted that RWAs are an important area of growth for Aave DAO.

As a result, the team will refine its approach based on community feedback. The goal is to find the right way to integrate RWAs into the Aave ecosystem without compromising decentralization or governance principles.

AAVE Remains the Core Token

Kulechov’s statement highlights that AAVE remains the primary governance and utility token of the ecosystem.

“There is only AAVE and the protocol will continue to focus on strengthening its existing token rather than diversifying into new assets.

This decision underscores Aave’s dedication to decentralized governance and ensures that any future developments align with the community’s long-term vision.