Curve founder says DeFi must ditch token emissions for real revenue

💡 DMK Insight

Egorov’s comments hit home: without real revenue, protocols risk losing liquidity fast. As token incentives wane, traders need to reassess their positions in DeFi projects. The broader market is already feeling the pinch, with many protocols struggling to maintain user engagement. This could lead to a liquidity crunch, especially for those relying heavily on tokenomics rather than sustainable revenue models. Watch for shifts in trading volumes and liquidity pools—if major players start pulling out, it could trigger a domino effect across the sector. On the flip side, this might create opportunities for protocols that are innovating around revenue generation. Keep an eye on projects that are pivoting to more sustainable business models, as they could attract the liquidity that others are losing. For now, monitor key liquidity levels and be cautious about overexposure to projects that lack a clear path to profitability.