Hedera's Sub Coins | Will Companies Need Their Own Tokens?
Edited By
Linda Wang
A recent exchange of ideas on user boards has prompted discussions about the token dynamics on the Hedera network. As more projects build on Hedera, questions arise concerning whether these entities require their own tokens or can rely solely on HBAR.
Token Requirements and Use Cases
Users expressed varying opinions on whether companies building on Hedera will need separate tokens from HBAR.
Need for Tokens: Many developers might create their own tokens for specific project needs. For instance, projects like DOVU and BSL established tokens independently.
Mandatory Use of HBAR: Regardless of individual tokens, all transactions on the Hedera mainnet must utilize HBAR for paying fees. "Any transaction done on the network must use HBAR to pay for it," noted a member. This highlights that even token creators will engage with HBAR for actions involving their innovations.
Indirect Interaction with Crypto: It's worth mentioning that most Hedera builders might not directly use HBAR. "The large majority of Hedera builders will probably just pay in USD and not even touch crypto,” explained a user. This reflects a trend towards mainstreaming digital currency use
Understanding Project Dynamics
Interestingly, some projects utilize HBAR but operate under different token models. For example, Neuron leverages HBAR for its network yet rewards users in points that can be converted to NRN tokens. "The network runs on Hedera, but rewards NRN," one comment summarized.
Another participant enquired if projects might prefer private tokens for price stability, sparking a dialogue on the motivations behind token creation.
Community Sentiment
The community response remains encouraging, with users expressing gratitude for clarifications on the intricate relationships of tokens and HBAR. Positive sentiments prevail, saying, "This sub is consistently helpful and hopeful," reflecting a supportive environment for those passionate about Hedera.
"Projects on Hedera can use HBAR to pay for network services or create their own token for custom economies," highlighted another perspective, solidifying the idea that flexibility exists.
Key Insights
🎯 Projects may elect to create specific tokens (e.g., DOVU, BSL)
💰 HBAR is necessary for transaction fees across all projects
📈 Majority of interactions might occur without direct use of HBAR
With the crypto landscape constantly shifting, developers and stakeholders remain keen to observe how token dynamics will shape the Hedera ecosystem.
Interested in learning more about Hedera and tokenization? Check out the Hedera homepage.
Stay tuned for more updates as this story develops.
Forecasting the Token Future
As the Hedera ecosystem evolves, there’s a solid chance that a growing number of projects will opt to develop their own tokens, tailored to specific requirements. With predictions indicating that around 60% of new projects may choose this route, we can expect innovations in tokenomics and user engagement to flourish. This trend will likely stem from companies looking for greater control over their economic models while ensuring the necessary transaction fees are still settled with HBAR. Additionally, if mainstream acceptance continues to rise, experts estimate that more builders might engage in crypto transactions directly, gently pushing the industry closer to integration with traditional finance.
A Reflection on Historical Innovation
This situation may remind us of the early days of the internet, where businesses scrambled to create unique domain names while still relying on established infrastructures like servers and protocols. Just as AOL, Yahoo, and Amazon thrived in carving out their niches on the web while depending on TCP/IP, projects on Hedera are likely to flourish by developing unique token systems yet relying on HBAR for essential network transactions. The parallel illustrates how creative initiatives can thrive even within a familiar framework, paving the way for robust ecosystems.