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Question

Why do dapps need tokens?


Answers (1)

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Arsalan Afzal
Feb 13, 2022 05:48:03

Tokens are necessary because they provide a way to economically incentivize participants in dapps. In the absence of tokens, there would be no way to directly reward participants for providing valuable services or products within the dapp. This would likely lead to fewer people being willing to contribute their time and resources to developing and using dapps, which would in turn limit the overall usefulness and impact of this new technology. Tokens also allow for a more decentralized governance model, since they can be used to vote on important decisions within the dapp. This is another important feature that helps ensure the long-term success of dapps, as it allows for more democratic decision-making processes that are resistant to censorship or control by any single entity.

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