Don't just focus on the tree in front of you and ignore the entire forest.

Written by: SmokeyTheBera, Chief of Berachain

Translated by: zhouzhou, BlockBeats

Editor's Note: This article discusses the recent phenomenon of multiple projects issuing tokens within the Berachain ecosystem, reminding founders not to issue tokens blindly. Tokens should drive growth when the product reaches market fit; otherwise, it may affect user adoption. In a sluggish market environment, with limited community funds, a decline in token prices can damage product image. Token issuance should avoid competition at the same time, ensure reasonable valuation, and focus on long-term value rather than short-term exits. The author supports the development of Berachain but emphasizes that success requires patience and strategy, suggesting that teams prioritize ensuring profitability and user growth.

Here is the original content (reorganized for better readability):

Friends of Berachain, this is my first attempt at writing an article. This piece mainly targets the Berachain ecosystem, but I hope some of the points resonate with the broader community, especially those considering issuing tokens.

Recently, I have seen several teams within the Berachain ecosystem launching tokens or preparing to initiate new token issuances in the coming weeks, totaling about 8 projects. From one perspective, this is worth celebrating—new tokens can drive economic activity, spark market speculation, and even promote protocol growth. Tokens can bring about a wealth effect, and if the local token in the Berachain ecosystem performs well, it will benefit from it.

On the other hand, we should broaden our perspective and deeply consider the true value that token issuance can bring. After issuing a token, the public perception of your product will inevitably be linked to its price. Few projects can escape this rule unless they have no direct competitors in the market or are early pioneers (like projects such as 1Inch or Compound).

In the current on-chain environment, the vast majority of altcoins (and even the entire market) cannot escape the influence of market gravity, and a sluggish token price may directly affect product adoption.

The Timing of Token Issuance is Crucial

Ideally, tokens should be launched when the product has already demonstrated product-market fit and is at a point of explosive growth. It should be a reward for early users, thanking them for helping the product reach this stage. At the same time, it should serve as a tool to drive asymmetric growth, rather than a burden hindering adoption.

Next, I want to address some realities that are usually only mentioned in private conversations.

The Market Doesn't Wait, and the Community Can't Save You

No matter how loyal your community is, a continuously declining price curve will affect adoption. Currently, most tokens are on a "only down" trajectory. More importantly, within the Berachain ecosystem, your token belongs to the "alt of an alt," while top on-chain tokens like Solana are struggling to find buyers. Are you sure this is a good time to issue?

You should seriously ask yourself a question: "Who is the marginal buyer of my token?"

If you don't have a clear and differentiated answer and cannot ensure that token distribution can reach new potential buyers, I suggest you think it over again. Don't ignore the long-term impact for short-term "dopamine hits." Because the answer is definitely not "the community."

The community will support you, use on-chain products, and make opportunistic investments. But community funds are limited; they cannot save your token. Project teams need to focus on long-term viability rather than short-term market timing.

Some say market timing cannot be predicted, and I partially agree. But you can build a "default survival" product that can be profitable, and even repurchase at the right time to truly create value for token holders (of course, provided it is legal and compliant).

I want to emphasize that issuing tokens will not make your work easier; it will amplify everything:

• If the token price rises, your product will be like an S-tier king, the team invincible, and everyone will be chasing you.

• If the token price falls, you will be labeled a scammer, the product deemed worthless, the team called incompetent, and some may even attack you for having taken venture capital money.

Of course, the situation is not black and white; some protocols do have a core need for tokens, such as certain DeFi products that require tokens to function properly. But these cases are rare and do not apply to most projects.

How to Properly Initiate Token Issuance?

If you really decide to issue tokens, at least pay attention to the following points:

• Coordinate with other projects in the ecosystem; do not schedule multiple token issuance dates too close together to avoid diluting market demand.

• Give the market time and space to allow funds to flow and rotate, rather than all rushing together to grab market share.

• Do not overestimate valuation; if you have already conducted private fundraising, launching at a flat valuation in the current market environment may be a more reasonable choice.

Key Takeaways

• If your product is already making money, increase investment, boost revenue, and optimize distribution, rather than rushing to issue tokens.

• Let the product default to survival, ideally being truly profitable and leaving room for future repurchases.

• The existence of tokens may affect product adoption; some users may actively participate in non-token projects (anticipating future airdrops), but if they see a declining token price, they may directly abandon the project.

• In the current market environment, tokens in the 10M-200M market cap range are basically in a "no man's land" of price discovery; either everyone is mining stablecoins or gambling in extremely low market cap shitcoins.

Wrong motivations for issuing tokens: pressure from investors, community expectations, team wanting to cash out.

Correct motivations for issuing tokens: the product has proven PMF, and there is a clear roadmap showing how the token will promote growth.

My Concerns About the Berachain Ecosystem

Currently, the number of token issuances within the Berachain ecosystem is excessive, and I worry this will lead many teams to "self-sabotage" in terms of adoption and traction. Ultimately, this may create two extremes:

• One extreme is that a highly loyal community forms within the Berachain ecosystem, slowly growing stronger.

• The other extreme is that future teams, seeing the current situation, are discouraged and choose not to issue tokens on Berachain.

Of course, looking optimistically, these tokens may exceed expectations, drive product growth, or at least allow the founders within the ecosystem to learn real lessons from failure.

I write this article because many people have privately asked me about my views on the recent TGE in the Berachain ecosystem. I have always supported the Builders on Bera, and I hope they succeed, but I hope even more that they achieve long-term success.

Although this may sound a bit like a motivational speech, the crypto industry is a marathon, not a sprint. We have been navigating this industry for three years and understand its truths well.

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