Berachain Ecological Token Issuance Wave: Opportunities and Challenges Coexist

Recently, a wave of token issuance has emerged within the Berachain ecosystem, with approximately 8 projects currently launching or planning to launch new tokens. This phenomenon has attracted the attention and reflection of industry insiders.

Token issuance can indeed bring some positive effects, such as stimulating economic activity, sparking market speculation, and even promoting protocol growth. If the local Token performs well, the entire ecosystem will benefit. However, we need to look at the true value of token issuance from a more macro perspective.

After the token issuance, the product's image in the public eye will inevitably be linked to its price. Unless it is an early pioneer or has no direct competitors, very few projects can escape this rule. In the current market environment, most alternative coins struggle to escape the influence of market gravity, and the sluggish token price may directly affect the adoption rate of the product.

Ideally, tokens should be launched when the product has demonstrated market fit and is in a phase of explosive growth. It should serve as a reward for early users and also become a tool to drive asymmetric growth, rather than a burden that hinders adoption.

However, the reality is often more complex. Even with loyal community support, a continuously declining price curve will still affect product adoption. Currently, most tokens show a trend of "only falling and not rising". In the Berachain ecosystem, newly issued tokens belong to "copycats among copycats" and face greater challenges.

The project team needs to seriously consider: who is the marginal buyer of the Token? If there is no clear and differentiated answer, and it cannot be ensured that the Token distribution will reach new potential buyers, then it may be necessary to reassess the timing of the issuance. Although the community will provide support, its funds are limited and cannot independently sustain the value of the Token.

Token issuance amplifies everything: when prices rise, products are in high demand; when prices fall, projects may face severe criticism. Therefore, project teams should focus on long-term survivability rather than short-term market timing.

If you decide to issue a token, it is recommended to pay attention to the following points:

1. Coordinate with other projects in the ecosystem to avoid overly concentrated issuance dates.
2. Give the market enough time and space to allow funds to flow and rotate.
3. Reasonable valuation, consider going live with a flat valuation.

For projects that are already profitable, it is recommended to prioritize increasing revenue and optimizing distribution, rather than hastily issuing coins. The product should have long-term viability and ideally achieve real profitability, leaving room for potential buybacks in the future.

The correct motivation for issuance should be: the product has proven its market fit, and there is a clear roadmap showing how the Token will facilitate growth. It should not be due to pressure from investors, community expectations, or the team's need to cash out.

For the Berachain ecosystem, the current number of token issuances may be excessive, which could lead many teams to self-limit in terms of adoption and attractiveness. In the future, two extreme scenarios may emerge: either a highly loyal niche community forms, or future teams may be deterred.

Nevertheless, we remain optimistic about the Berachain ecosystem. These Tokens may exceed expectations, driving product growth, or at least allowing the founders to gain valuable experience. The crypto industry is a marathon that requires patience and strategic thinking. We look forward to seeing more projects succeed in the long term and contribute to the development of the entire ecosystem.