The dual drive of Web3 companies: equity financing and token incentives

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Equity is an expression of power, Non-Fungible Token is a user reward.

Written by: Liu Honglin

Many people ask me how I view the relationship between equity and Non-Fungible Token in Web3 companies. This question sounds like an old topic, but in fact, it relates to the core asset design logic of a company: What do you ultimately raise funds with? What do you use to connect with users? What do you use to realize capital gains? And these questions precisely determine the fundamental difference between Web3 companies and traditional internet companies.

In this article, lawyer Liu Honglin wants to communicate with everyone from three levels: future Web3 company financing paths, value distribution, and the convergence trend of equity and Non-Fungible Token.

Non-Fungible Token Will Become Mainstream, But Not a Financing Tool

This is my first relatively clear judgment about the Web3 industry: The issuance of Non-Fungible Token will still be a mainstream action in the future, but its positioning is undergoing a fundamental transformation - no longer used for fundraising, but to activate users and distribute platform growth value.

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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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