To Tokenize your project or not….. – Trislit
Many indie developers love the sense of freedom that comes from designing their own product without the need to appease outside forces while they work. This can provide a path towards initial community building and give an aspiring programmer the early feedback from enthusiastic fans that they need to deliver something the community can get behind. But what happens when you get to the point where you need to start making money?
We in the crypto space often push the “tokenization” of your assets, or the creation of a separate token for in project market use. These suggestions can bring come some serious side effects on both the project scope, as well as the community spirit surrounding your project though. Without proper management of these aspects migrating to a more decentralized approach can actually derail your project during its formative stage in ways you may not expect.
Effects on Project Scope
If your project did not have a need for direct inclusion of your audience to begin with, shoehorning token control in can prove a challenge. If you’re making a game, does the token provide insight into the story or narrative? If you’re working on data storage, is there an actual need to have it transferred out of your sphere of control? Adding the complexity required for inclusion of a decentralized custody chain can be daunting for anyone, and for those who are already busy building their base product, taking the time to understand the ecosystem is also time being taken away from delivering on your end goal.
You’ve built an excited community of fans and advisers who have fallen head over heels for your product, and are eagerly awaiting delivery of a beta to see where this is heading. Introducing a token into this mix can mold the community in subtle ways that may not be immediately apparent. With the promise of direct ownership, you’ll start to see more investment minded people come in looking for methods of getting rewarded, and you may see some of your earlier community decide that the direction is not what they initially agreed to and start to engage less often. None of this needs to be a negative change, but it should be anticipated and expected.
Effects on Funding Sources
With the constant news surrounding different aspects of Cryptocurrency, the types of funding you may be able to see will change. Some traditional VC’s will shy away and some others will become more interested then they may have been previously. With this comes more research on your part. Some investors are savvy enough to understand the nuances associated with the eccentric Crypto price market, but most aren’t. With this needs to come an understanding of the returns that can be expected from this investment, and the developer needs to have clear guidance on what aspects of this project they will be giving up in exchange for the funding.
Should I use this? Well that depends….
We’ve heard from many sources that crypto is frequently seen as a solution looking for a problem, but this outlook comes from those who see the current landscape of projects and are not able to see how it applies to their immediate needs. With more insight into the ramifications of utilizing this new technology perhaps we can shift the feeling of needing it simply for the novelty associated with new tech, to using it only where required to solve a larger problem. If your desire to use crypto is simply to make a lot of money and nothing else, you can most likely expect it to lead to extreme customer dissatisfaction and project failure.