Is there any reason why so many dApps have their own token?
Is there any reason why so many dApps have their own token?
I understand that tokens are an easy way for dApp developers to generate money for the development of their app, marketing, etc. But other than that, is there any reason utility-wise, that so many dApps have their token? Wouldn’t their services work just as well if they simply used the original currency of the blockchain they are built on?
Ruban Lovelace Answered question December 15, 2022
I think that’s partly true. But there’s another reason. Dapps often need to make changes and ideally it shouldn’t just be up to the original developers to make these decisions arbitrarily. A governance token can ensure that decisions are made trustlessly by people who are actually invested in the protocol.
Myat Kelly Answered question December 15, 2022