skininthegame

Why do apps drop points rather than an onchain token?

Feels mid to me. Just drop the token and give people skin in the game for real asap

Bullish onchain points for this exact reason.

Onchain points are skin in the game early on before the product has matured to a level where full skin in the game (through an L2 ERC-20) makes sense.

Different from off-chain points because you can redeem the onchain points for USDC

Onchain is the new online - FID 206 -  cooprecords.xyz

What is main reason to do onchain points first and then token? Feels convoluted

I see it happening so I’m prob missing something, but to me it just feels starting small ERC20 is best approach

From what I’ve seen, both those reasons are more narrative than reality.

Reg risk small if no public sale or marketing + the token just lives onchain you don’t have to treat it as second product. If team focuses too much on it that can be a distraction but founders can control that

Launching a token is like managing a second product which is hard for a small team. Also carries regulatory risk.

Points being non transferable and unclear supply allow you to iterate on product features and token system parameters much quicker without wild price swings that create distraction.

The further you are from reality the bigger the dream can be.

Points are further from reality than tokens, as points are far less traded.