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
dApps are dApps because they interact with apis exposed by smart contracts on-chain. A new dApp, if it requires new on-chain features, requires a new smart contract because existing smart contracts cannot be modified except under specific circumstances, and only with the cooperation of the original contract’s key holder. So, if you need specific token features, you need your own specific token.
Andrew Peters Answered question December 15, 2022