Hey crypto fam! Buckle up, because even in the seemingly chill world of DeFi, drama can erupt faster than a Shiba Inu meme goes viral. This time, the spotlight's on Aave, a DeFi protocol usually loved by its community. But lately, things are getting spicy.

Aave Labs, the masterminds behind Aave, just dropped a new plan called "Horizon." Sounds cool, right? Think of it as Aave trying to bridge the gap between old-school finance and our beloved decentralized world. Horizon is all about Real World Assets (RWAs). Basically, they want to let big institutions use things like tokenized money market funds (think super safe, short-term investments, now on the blockchain!) as collateral to borrow stablecoins like USDC and GHO. The idea? To bring more traditional finance folks into the DeFi party.

Sounds like a win-win, doesn't it? More adoption, more liquidity, maybe even more gains for us all? Well, hold your horses. The Aave community isn't exactly throwing a pizza party to celebrate Horizon. In fact, the proposal has stirred up a hornet's nest of questions and concerns, especially around a potential new token and how the profits will be shared. Let's dive into the drama!

Horizon's "Temperature Check" – Community Not Feeling the Heat?

So, Aave Labs put out a "Temp Check" proposal. Think of it as a vibe check before things get serious. They explained that tokenizing RWAs is becoming a hot trend. Why? Because it makes assets more liquid, cheaper to manage, and tradable 24/7, like crypto itself! They pointed out that tokenized US Treasury bonds have exploded by 408% to a whopping $4 billion. Institutions are getting in on the action, and Aave Labs reckons the on-chain RWA market could balloon to a massive $16 trillion in the next decade!

That's where Horizon comes in. It's Aave Labs' project to launch an RWA product that works with the Aave protocol. The plan is to let institutions deposit those tokenized money market funds as collateral and borrow USDC and GHO against them. This would unlock a flood of stablecoin liquidity and give institutions easier access to DeFi.

The initial plan is for Horizon to launch as a "permissioned instance" of Aave V3. Think of it like a VIP section of the Aave club, specifically for institutions. Eventually, if the Aave DAO (that's the community governance, remember?) gives the thumbs up, Horizon could even move to a customized Aave V4 setup on specific networks. To keep things aligned with the Aave community, there’s a profit-sharing plan on the table... but that’s where things get bumpy.

Community Backlash: Profit Share Dwindling, New Token Mystery

Instead of cheers and excitement, the Horizon proposal was met with a wave of skepticism and outright opposition. One prominent Aave DAO representative, EzR3aL, didn't mince words. They called the proposed profit-sharing model "too aggressive."