When to flip the fee switch

Tokens need business models: When to flip the fee switch

Scott Duke Kominers

The question isn't to fee or not to (take) fees, but when.

Many marketplaces heavily subsidize user activity to bootstrap initial growth and liquidity by giving their product or service away for free (or at a steep discount). But that’s not sustainable: At some point, a business has to start taking fees so that it’s valued for its business.

Flipping the “fee switch” can seem scary because when you start charging for something that was previously free, surely usage will go down? And yet it's important to remember that while raising prices can divert some customers away in the short run, it also means making more money from those who stay — and creating a more sustainable business model for tokens.

Too many businesses wait too long to flip the fee switch, or set prices too low. So here’s how to reason about the what, why, how, and when to turn on fees in a network.

read more

Planning for chaos: You need an operating plan

Emily Westerhold

There are many, many things that founders — especially those in the crypto industry — can’t control: Markets are volatile, regulations are evolving, expectations are high.

That’s why it’s so important for founders to focus on what they can control, which is where operating plans come in. In concept, an operating plan is simple — it’s keeping track of everything your business is doing. But keeping track of everything can get complicated, which is why having a plan to organize it all helps.

An operating plan isn’t a strategic plan, though. It translates vision into velocity, without burning your runway or your team, because it focuses on people, cost, and timelines. We cover where founders can start, how budgeting works, and some common mistakes to avoid.

read more

The latest news and policy updates: White House report on digital assets

The White House recently released its first comprehensive report on digital assets. The report covers the nuances of the DeFi tech stack; stablecoins as a means to protect the primacy of the dollar-based international monetary system; approaches to countering illicit finance; and many other top-of-mind topics.

We’ve come a long way in a short time — so what’s next? Most importantly, the Senate building on the CLARITY market structure legislation, which recently passed the House with broad ...