TOKENS

'Weirdness about to happen': Panel forecasts 2025 tokenomics evolution

theblock.co 31/12/2024 - 20:00 PM

Token Launch Predictions for 2025

The upcoming year promises new token launches, according to experts at The Block’s Emergence conference in Prague.

Arianne Murphy, CMO at Flight3, noted that while 2024 has been challenging, 2025 looks promising. She cited HyperLiquid’s token-generating event as an example, where 31% of tokens were distributed on day one, leading to a valuation of $12 billion within a week. However, she cautioned that the sustainability of this model is yet to be determined.

Panel Discussion Insights

The panel titled “Wen and Why Token? The Evolution of Tokenomics,” included experts like Clay Robbins, Diana Biggs, and Michael Churchouse. They discussed the changing landscape of tokenomics in decentralized finance and the challenges and opportunities in token launches.

Alignments and Misalignments

Robbins emphasized the need for thorough planning before launching a token, stating that focus should remain on the product rather than price speculation. He highlighted potential regulatory challenges in light of the U.S. elections.

Churchouse raised concerns about misaligned incentives and the importance of directing token flows to genuine participants rather than speculators, which could destabilize projects. Biggs added that remaining connected with backers and communities is crucial.

Flexibility and Design

The panelists stressed flexibility in token design to adapt to changes. They agreed that successful projects must balance technical needs with the strategic role of tokens in promoting participation.

Robbins mentioned that founders are now more selective about venture firms, ensuring long-term alignment before adding them to their cap tables. They learned from past mistakes, such as raising excessive private capital.

Future Trends

Looking ahead, the discussion turned to predictions for the future. Panelists foresee a resurgence in ICOs, shorter vesting periods, and the integration of AI into token distribution.

Churchouse predicted diverse implementation of issuance models similar to large language models, sparking excitement for upcoming innovations. Biggs noted that AI’s involvement could lead to a fairer launch process, with community participation expanding in ICOs and public sales.

Robbins concluded that exchanges will increasingly listen to their communities, ultimately reshaping how tokens enter the market.




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