When should a Web3 project really consider launching and not just raise to make money.
1. Tokens and their use cases have evolved over time, leading to varying perspectives within the Web3 ecosystem.
2. Identify if your product falls into one of the three categories: needs a token, improved by a token, or does not need a token.
3. Layer 1 networks and digital resource networks are examples of products that need a token.
4. Tokens can greatly enhance products such as content creation/curation, decentralized insurance, and those reliant on network effects.
5. Consider potential drawbacks such as introducing friction or alienating equity holders when deciding to implement a token for your product.
6. Alternatives such as governance tokens or reputation systems should also be considered as potential incentivization mechanisms.