Here’s how utility tokens can drive crypto adoption higher

Tascha Labs founder Tascha recently Made to remember Regarding the potential of utility tokens, the community said it could emerge in the bear market and further promote the adoption of cryptocurrencies.

She said:

“The real enterprise is only awakening to the power of tokenization. The speculative death of the bear at mkt gives room for a real innovation in tokenization.

Companies using viable products that have been successful in integrating utility tokens * early * into their existing business models will be rewarded brilliantly while driving crypto adoption. “

She said that utility tokens with accurate usage are separated from those that give owners a portion of the company’s profits, and the real power lies in providing clear usage.

Where to embed utility tokens?

Loyalty program with liquidity

The first method is to allow loyalty points to be settled.

In traditional business, loyalty points are collected at the individual level and reserved for personal use only. In many cases, users will not be able to sell or transfer them elsewhere. Tokenizing the points program allows users to trade loyalty points in the secondary market.

The ability to cash out motivates users to earn loyalty points. It makes loyalty points more attractive, bringing in user growth and more traffic from existing users.

Sign-up bonus

Only companies with significant capital can book millions of dollars for sign-up bonuses in the traditional market. Tokenizing sign-up bonuses allows any company to use this powerful marketing method without ruining their limited budget.

However, if the sign-up bonus is in token form, it does not affect the company’s current cash position. Instead, when users redeem tokens for future company products and services, the tokens distributed today will be deducted from tomorrow’s revenue.

Tascha (@TaschaLabs) June 30, 2022

This method also allows you to adjust the redemption rate based on the performance of the token. In addition, if sign-up bonus tokenization is applied in conjunction with loyalty points clearing, companies can move higher incentives to sign up and use.

Expansion of stakeholder base

The business automatically expands its stakeholder base by allowing loyalty and clearing of sign-up tokens. Tokens in circulation in the secondary market increase the user interaction that appears to investors.

Which companies need to integrate utility tokens?

Tascha has listed some important criteria for businesses to assess whether incorporating utility tokens will benefit them.

Most importantly, the business in question must have a successful product. Launching a new product token without knowing if it will succeed will disrupt the system in the case of the inevitable bear market. Tasha Note:

“Token price reflexivity and opportunistic’users’ give false signals to product viability. When the tide goes down (which will happen), you will notice that you are swimming naked. “

Also, tokens are issued at the expense of the company’s future profits, making companies with reduced marginal costs a good candidate for launching a utility token system, especially if they are in a market with a. Become. Winner-Take-All possibilities.