Here’s how tool tokens can drive crypto adoption higher
TaschaLabs’ founder Tascha recently reminded the community of the potential of tool tokens and said they could emerge under the bear market and pursue crypto-adoption further.
She said:
“Real companies are only waking up to the power of tokenization. The speculative death of bear mkt provides respite for real innovations in tokenization.
Companies with viable products that manage to integrate tool tokens into existing biz models * early * will be rewarded, while driving forward crypto-adoption. “
She distinguished the useful chip with precise use from those who gave their owners a share of the company’s profits and said that the real power lies with those who give clear use.
Where should I include tool tokens?
Loyalty programs with liquidity
The first way would be to enable the settlement of loyalty points.
In traditional businesses, loyalty points are collected on a personal level and are reserved for the person’s use only. Users often cannot sell or transfer them to another location. Tokenization of a loyalty program will allow users to trade their loyalty points in a secondary market.
The ability to pay will motivate users to earn loyalty points. It would make loyalty points more attractive, and provide user growth and more traffic from existing users.
Registration bonuses
Only companies with significant equity can reserve millions for registration bonuses in the traditional market. A symbolization of the sign-up bonuses will allow any company to use this powerful marketing method without ruining its limited budgets.
However, if the sign-up bonus is in token form, it does not affect the company’s current cash position. Instead, tokens issued today are deducted from tomorrow’s revenue as users redeem tokens for the company’s products and services in the future.
– Tascha (@TaschaLabs) June 30, 2022
This method will also allow the company to adjust redemption rates based on how well their tokens are doing. Furthermore, if the tokenization of sign-up bonuses is used in conjunction with loyalty point settlement, the company may provide a higher incentive to sign up and use.
Expand stakeholder base
The company automatically increases its stakeholder base by allowing the liquidation of loyalty and registration symbols. The tokens circulating in the secondary markets will increase user interactions, which is manifested in investors.
Which companies should integrate tool tokens?
Tascha listed some important criteria for companies to consider whether or not they can benefit from incorporating tool symbols.
The most important thing is that the business in question must have a successful product. Launching tokens for a new product without knowing if it will succeed will crush the system in the event of an inevitable bear market. Tascha notes:
“Symbol price reflexivity and opportunistic” users “will give you the wrong signal about the product’s viability. When the tide goes out (it will), you will find yourself swimming naked.”
Also, since tokens are issued at the expense of the company’s future revenue, a business with declining marginal cost would be an excellent candidate to launch a utility token system, especially if they are in a market with one. win-takes-all potential.
