Top revenue-generating protocols share value with token holders using simple tokenomics.

On a flip side, the more complex the tokenomics, the more cautious I'm about the project.

Part of this is due to me getting rekt with overly complicated Ponzi-tokenomics:

If you don't understand complex tokenomics, you are the exit liquidity.

So, less complicated is not a bad thing, although it's less exciting.

Just check $BERA with their 3-token model: The model was supposed to boost liquidity, yet without real revenue, the team is considering revamping tokenomics.

At the end of the day, if there's no value for the token, over-engineered tokenomics won't be able to maintain its price.

Revenue sharing to holders is key.

Question: Which model is your favorite?

- $HYPE does automatic buy backs

- $AAVE ad hoc: DAO votes on model (currently buy back)

- $SKY/ $MKR: Stake $SKY and get yield in stablecoins $SKY

- $veAERO: Stakers get trading fees while LPs get AERO emissions

We're at an exciting stage of experimenting with how to add value for token holders.

But while crypto is moving towards simplicity, TradFi is FOMOing into crypto via reverse mergers and strategic crypto reserves.

Seems that the top this type will come from TradFi instead of our own over-leverage.