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Fee-Powered Market Economics: Breaking the VC Dependency Loop
Traditional crypto projects often rely on outside capital to bootstrap incentives and rewards. But what if the system could sustain itself?
A VC-free market design flips this script. Instead of chasing headline incentive programs funded by external money, the model channels protocol fees directly into the reward mechanism. This creates a self-reinforcing loop where user activity generates fees, which then power the incentive structure.
The advantage? Sustainability over hype. When rewards flow from actual platform economics rather than venture capital, the project builds on genuine utility and user engagement. It's a more transparent, organic way to align incentives—proving that well-designed fee structures can fuel growth without relying on continuous external funding.