DeFi’s Path to Sustainability: Curve Founder Advocates for a Shift Away from Token Emissions and Towards Genuine Revenue Streams

In a recent conversation with Cointelegraph, Michael Egorov, the founder of Curve, emphasized the imperative for DeFi protocols to transition away from relying on token emissions as a means to attract and retain liquidity. According to Egorov, the existing model, which is heavily dependent on token incentives, is unsustainable in the long term. He stressed that for DeFi to achieve true sustainability and resilience, it is crucial for protocols to generate “real revenues” rather than merely relying on the allure of token rewards. Egorov’s statement underscores a significant challenge facing the DeFi sector, where the efficacy of token emissions in enticing liquidity has begun to wane. As the DeFi landscape continues to evolve, the need for protocols to diversify their revenue streams and adopt more conventional business models has become increasingly apparent. The shift towards real revenue generation would not only enhance the financial stability of DeFi protocols but also contribute to the overall health and longevity of the ecosystem. By embracing this new paradigm, DeFi can mitigate its dependence on speculative token value and focus on building robust, revenue-driven business models that can withstand market fluctuations. This strategic adjustment is seen as vital for the sector’s continued growth and success, as it would enable DeFi protocols to operate independently of token price volatility and attract a more stable and committed user base. As such, Curve’s founder, Michael Egorov, is among the industry leaders advocating for a proactive approach towards achieving financial sustainability in DeFi, emphasizing that protocols cannot “live without real revenues flowing” as the allure of token incentives gradually loses its potency in attracting and retaining liquidity.