99% of projects don't actually NEED a token.

Study Base, Arbitrum, LayerZero & Wormhole (before token launch) etc.

All amazing products - all fully functioning with no token (Base still is, and thriving).

But let me add more nuance.👇

There are obvious arguments FOR having a token (decentralisation, governance, bootstrapping, liquidity, community building etc.)

And these are no doubt important factors.

But the reality is, and this is important to understand from a retail POV, these factors usually come secondary to the underlying principle that it's much easier to raise capital/extract profits vs traditional revenue models.

And many crypto products wouldn't be able to raise (and thus build) in the first place if it weren't for this dynamic (as these businesses simply wouldn't be profitable enough on revenue alone).

So do these products NEED tokens to function? No.

But does the industry rely on new tokens to innovate? Yes.

Obvious downsides are: Private > public market arb (retail extraction), token dilution, liquidity fragmentation etc.

But the obvious pro is: More innovation, as teams are able to raise capital to build, and devs are incentivised to develop new produc