Original title: (Why I Choose Binance Alpha — A Passage for Crypto to Enter Reality)
Original author: Chari.eth, founder of TaleX.
Editor's note: Chari.eth is a long-time Web2 internet entrepreneur who founded TaleX Protocol in 2022, a decentralized retail platform driven by token incentives for content and physical goods. The following is the original content:
If you are not aiming for Binance Spot, why would you go for Binance Alpha?
If you haven't listed on Bybit or Bitget, why would you go for Binance Alpha?
The market makers directly rejected me with these two questions.
They believe Binance Alpha is just a matter of recognition, and the essence of DEX makes it not very convenient for sales. Additionally, Binance requires you to provide significant airdrops to users.
Either it can cooperate with other major CEXs for sales, or it can take a gamble on Binance spot trading; that recognition and the airdrop for users are what matter.
Because I never thought about making sales at the time of TGE.
I just need a place to distinguish our tokens from thousands of similarly named tokens and make it easy for users to trade through CEX.
Think about it, if you invented Bitcoin back then, isn't this what you needed?
From this perspective, Binance Alpha perfectly meets my requirements.
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The business model in the crypto space must use tokens at the first opportunity.
So, how to make it convenient for users to trade these tokens becomes very meaningful.
For instance, Bitcoin, whether for mining users, transferring users, or investing users. After the genesis block was mined, these demands naturally emerged. The exchange itself was born out of this demand.
Conversely, if a business can be established without the participation of tokens, I don't understand why it needs to issue tokens. Is it to make money from sales?
The traditional scheme of raising financing/data and finally listing to exit is just a simple copy of the equity era; the speculators are simply engaging in regulatory arbitrage.
I have no ability or interest to interfere with how others do it. But I have no interest in following them.
During the period of pondering over listing tokens, some investors asked me, if you can't make money from sales, why list the token?
I said for the business. The business needs token participation, and listing the token can activate the cycle of 'business growth — token appreciation — attracting more business growth'.
He asked, which companies saw rapid growth after listing their tokens? For example, did listing help XXXX?
I said that's because their business and tokens are disconnected. The business doesn't need tokens or exchanges. Business is business, speculation is speculation.
We don't need to look at those failed cases. We can look at BTC, ETH, BNB...
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Our Tokenomics can be summarized in one sentence:
Consumption Mining: Earn tokens by spending.
Attracting user spending is the only reason for a business to exist. Rewarding user spending is the best footnote for 'users first'. This is a unique technology of the crypto era and my spiritual source in crypto entrepreneurship.
We will make our income transparent on-chain. We will put the company's reserve cash and all business gross profits into the liquidity pool in the form of LP.
The liquidity pool is the treasury, and the treasury is the liquidity pool.
Then reward users with tokens in real-time according to the order of user consumption and the amount spent.
Users can use tokens to spend in our products at any time (with special discounts), and the actual expenditure is borne by the treasury (liquidity pool).
All costs of the project team will be paid by redeeming LP tokens in the liquidity pool.
We will regularly issue announcements to remind about injecting or withdrawing LP tokens. All operations will also be fully transparent on-chain.
If recognized, continue to hold. If dissatisfied, token holders can choose to sell at any time.
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This plan is what we currently consider the best Tokenomics.
But based on the limitations of cognition.
We couldn't do this three years ago when we started our venture — launching the token immediately and adding all fundraising amounts to the liquidity pool. This would allow everyone to see our financial status clearly and transparently, and choose to exit at any time.
By the time it launched, the treasury amount was not only less than our fundraising amount (because the income over the past three years was less than our expenses), but investors' shares also had to be forcibly locked.
Compared to today's new investors in DEX, our VC investors have suffered significant losses.
We feel very ashamed and sorry.
But everyone still has hope. There is also a possibility of being forced to win passively.
We will launch a brand new product in the near future to meet the real needs of users, gain their recognition, and generate income.
And will continue to do so.
I miss the days when a product would launch and the token would launch at the same time.
I like CZ's plan. Low total price to list tokens, double the amount to unlock.
I like Binance Alpha.
I like Crypto.
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