utilization
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𤯠99% of Crypto Projects DONâT Need a Token!
Here's Why They're Still Thriving Without One!
Did you know that 99% of crypto projects don't actually need a token to succeed? Look at Base, Arbitrum, LayerZero, and Wormhole (before their token launches) - all fantastic, fully functioning products. In fact, Base is still thriving without a token!
But wait, there's more nuance to this story!
Sure, there are strong arguments for having a token - decentralization, governance, bootstrapping, liquidity, and community building are all important factors. However, from a retail perspective, it's crucial to understand that these often come secondary to a simpler principle: raising capital and extracting profits is much easier with tokens than with traditional revenue models.
Many crypto products wouldn't be able to raise funds or build at all if it weren't for this dynamic, as they wouldn't be profitable enough through revenue alone.
So, do these products NEED tokens to function?
No.
But does the industry rely on new tokens to innovate?
Absolutely.
There are some downsides, like retail extraction through private to public market arbitrage, token dilution, and liquidity fragmentation.
However, the big pro is that more innovation happens because teams can raise capital to build, and developers are incentivized to create new products and dApps.
I'd love to see more infrastructure products introducing dynamic token utilities, similar to what we've seen in the DeFi market. Regulation may limit this, but it's a fascinating topic that impacts value accrual.
What do you think?
Makes sense?
Your @Professor Mende - Bonuz Ecosystem Founder
#TOKEN #utilization #btc #fomo #infra
Here's Why They're Still Thriving Without One!
Did you know that 99% of crypto projects don't actually need a token to succeed? Look at Base, Arbitrum, LayerZero, and Wormhole (before their token launches) - all fantastic, fully functioning products. In fact, Base is still thriving without a token!
But wait, there's more nuance to this story!
Sure, there are strong arguments for having a token - decentralization, governance, bootstrapping, liquidity, and community building are all important factors. However, from a retail perspective, it's crucial to understand that these often come secondary to a simpler principle: raising capital and extracting profits is much easier with tokens than with traditional revenue models.
Many crypto products wouldn't be able to raise funds or build at all if it weren't for this dynamic, as they wouldn't be profitable enough through revenue alone.
So, do these products NEED tokens to function?
No.
But does the industry rely on new tokens to innovate?
Absolutely.
There are some downsides, like retail extraction through private to public market arbitrage, token dilution, and liquidity fragmentation.
However, the big pro is that more innovation happens because teams can raise capital to build, and developers are incentivized to create new products and dApps.
I'd love to see more infrastructure products introducing dynamic token utilities, similar to what we've seen in the DeFi market. Regulation may limit this, but it's a fascinating topic that impacts value accrual.
What do you think?
Makes sense?
Your @Professor Mende - Bonuz Ecosystem Founder
#TOKEN #utilization #btc #fomo #infra
$ENA $ETHFI This Project has been under our scope since 0.5 and we will go above the expecting 5$ mark for so many reasons, have a read from Ethena labs latest post... and dig deep into their partnerships and future integrations. keep an eye on these ones and make sure to do some of your own research... you know the drill. never share your seed phrases and dont connect to shady platforms promising the moon
#utilization #stake #BullorBear
#utilization #stake #BullorBear
LIVE
Ethena Labs
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Today we introduce $ENA into Season 2 in order to more closely align the growth in USDe with $ENA Users who lock $ENA at a minimum of 50% of their total USDe holdings per wallet will receive i) 50% increase in their rewards ii) the highest number of rewards per day of any pool
Full details in the link below: https://t.co/EcdaFwjN8i
Full details in the link below: https://t.co/EcdaFwjN8i