Cryptocurrency investor and DeFi analyst Miles Deutscher shared his thoughts on the need to use tokens in crypto projects. He emphasized that 99% of projects can do without a token, but acknowledged that tokens can promote decentralization, governance, liquidity and community building. However, the main motivation is the ease of raising capital or generating profits compared to traditional revenue models. 📊💰

There are only a few cases where a token is actually required to function, including Layer 1 blockchains and digital resource networks. For Layer 1 blockchains, a native monetary asset is required to ensure the security of the network, and tokens are used to pay transaction fees. While digital resource networks require tokens to balance supply and demand for services such as storage and computing. 🌐🔒