Native token adoptability

0 31

Written by

Professor1

Physicist

2 years ago

In community: Club1BCH(4ac4)

Topics: Native token, Adoptability, NFT, Crypto, Native token model, ...

Article No: 4

Date: 11/10/22

Topic: Native token adoptability

Hi everyone today we are going to discuss on native token adoptability,how it can work.

Projects with native token are more secure than those without ,and native token is essential for good projects and also for those that use their native tokens to maintain the loyalty of their investors.

Google: Native token model help to understand more about it

And also most DeFi and GameFi projects make use of their native tokens even if it is just to use within their ecosystem. That is a way of showing security consciousness.

Every project that has future and nfts in the workings of the project should have a native token because the crypto space believe it's essential than using other tokens for such transaction.

Even projects that use either PoW, proof of existence, proof of importance or any of the popular and new concensus, you'll find that they make use of their native token to control the situation of the ecosystem of their project

The fact that native tokens can be exchanged alongside other token kinds and do not require smart contracts to do so is a significant advantage of adopting them.

unlike ERC20, native tokens do not need additional event-handling logic or special transfer fees to track transactions.

Google: How crypto exchange use their own native token

Most of projects are using their own native tokens in order to fundraise for the development of the ecosystem & to maintain the position as stronger mean while some projects are not following the token adoptability. Instead of native tokens, Several projects use NFTs or Some other kind of deployments to be funded.

In reality, There are not only advantages but also the disadvantages in projects without a native token. Despite the risky conditions of investments, Some users are investing on projects without a native token.

Other projects uses NFTs rather than native token. I think it is best for a project to have its own native token because of the advantages of the token within it's ecosystem and also another important benefit of using native tokens is that they do not require smart contracts to transfer their value and can be transferred alongside other token types.

Do you think that it is a smart decision to invest on projects without native tokens?🤔

🤔 Actually, How do the investors get a profit without owning native tokens?