Thoughts on the issuance of Tokens for Berachain ecosystem projects

Recently, several projects in the Berachain ecosystem have issued or plan to issue Tokens, with about 8 projects engaged in such activities. This phenomenon has sparked some deep reflections on the timing and impact of Token issuance.

Token issuance can indeed bring some positive effects, such as stimulating economic activity, provoking market speculation, and even promoting protocol growth. If the local token performs well, the entire ecosystem may also benefit. However, we need to think more deeply about the true value of token issuance.

After the issuance of tokens, the public perception of the product will inevitably be linked to its price. With very few projects having no direct competitors or being early pioneers, most projects are unable to escape this rule. In the current market environment, most tokens struggle to break free from the overall market trends, and a sluggish token price may directly affect the adoption rate of the product.

Ideally, the token should be launched when the product has demonstrated market fit and is in a phase of explosive growth. It should serve as a reward for early users while becoming a tool to drive asymmetric growth rather than a burden that hinders adoption.

In the current market environment, even tokens on top public chains are struggling to find buyers, and the tokens in the Berachain ecosystem are even more like "copies of copies." Project teams need to seriously consider: "Who is the marginal buyer of my token?" If there is no clear and differentiated answer, it is advisable to rethink the issuance decision.

Community support is certainly important, but community funds are limited and cannot solely support the Token price. Project teams need to focus on long-term survival rather than short-term market timing. Issuing Tokens will not make work easier; instead, it will amplify everything: it is highly sought after when prices rise and heavily criticized when prices fall.

If you decide to issue a Token, it is recommended to pay attention to the following points:

1. Coordinate with other projects within the ecosystem to avoid a concentration of issuance dates.
2. Give the market enough time and space to allow for the flow and rotation of funds.
3. Reasonable valuation, consider going live with a flat valuation.

Core Recommendations:

• If the product is already profitable, focus on increasing revenue and optimizing distribution, rather than hastily issuing tokens.
• Ensure that the product can operate for a long time, preferably achieving profitability, in preparation for possible buybacks in the future.
• Recognize that tokens may affect product adoption rates and weigh the pros and cons.
• Understand the challenges faced by small and medium market cap tokens in the current market environment.

The correct motivation for issuing a Token should be: the product has demonstrated market fit and there is a clear roadmap showing how the Token will promote growth. Rather than acting hurriedly due to pressure from investors, community expectations, or the team's cash-out needs.

For the Berachain ecosystem, the current excessive issuance of tokens may lead many teams to self-limit in terms of user adoption and attractiveness. This could create two extreme situations: either forming a highly loyal but slowly growing community, or discouraging future teams from choosing to issue tokens in this ecosystem.

Nevertheless, these tokens may also exceed expectations, driving product growth, or at least allowing founders to gain valuable experience from it. The crypto industry is a marathon, not a sprint. Success requires patience, strategy, and a long-term vision.