One of the reasons that there is so much confusion around token design, and value accrual specifically, is that tokens, and the DAOs and protocols that issue them, are so multifaceted. Sometimes, the issuers want them to behave like shares in a corporation. Others issue “governance” rights to skirt regulations while insiders pump the tokens in the... See more

The most important takehome is that tokens are not equity, but are more similar to paid API keys. Nevertheless, they may represent a >1000X improvement in the time-to-liquidity and a >100X improvement in the size of the buyer base relative to traditional means for US technology financing — like a Kickstarter on steroids. This in turn opens up the... See more

To summarize, tokens can certainly play a role in building a network, but they are not a GTM motion in themselves. Pay attention to the kind of network you’re building and how token incentives interact with network utility before relying on them as a bootstrapping solution. 

Generally speaking the goal for you as the protocol owner should be to get your tokens into the hands of the right people (who will use your application and have a high CLV) – those that truly believe in your protocol. If they are not in the hands of users who truly believe in your team or product, they will probably claim and dump them (i.e.... See more

Many tokens in the wild today were launched without considering the user. Other tokens bundle too many “jobs to be done” into a single asset, muddying the value proposition like a feature-packed product that tries to be everything to everyone.