LinksDAO, known for its initial NFT-focused approach, is making a strategic pivot by announcing plans to launch a community token on Base, Coinbase’s layer-2 network. This move represents a significant shift in the organization’s tokenomics strategy.
Evolution of LinksDAO’s Strategy
LinksDAO initially gained attention in the NFT space during the 2021-2022 bull market. The organization started by selling NFTs that represented membership and voting rights. However, the crypto market’s dynamics have shifted considerably since then.
The decision to launch a community token on Base shows LinksDAO’s adaptability to changing market conditions. Base, being Coinbase’s layer-2 solution, offers several advantages including lower transaction costs and improved scalability.
Market Implications
This transition from NFTs to community tokens reflects a broader market trend. Many Web3 projects are moving towards more liquid token models. The choice of Base as the launching platform could indicate growing confidence in Coinbase’s layer-2 solution.
Community tokens typically offer several benefits:
- Enhanced liquidity compared to NFTs
- Easier price discovery mechanisms
- More flexible governance structures
- Better accessibility for new community members
Technical Considerations
Base’s technical infrastructure provides several advantages for community tokens:
- Lower gas fees compared to Ethereum mainnet
- Faster transaction processing
- Enhanced security through Optimistic Rollup technology
- Seamless integration with Coinbase’s ecosystem
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The launch timing could be strategic, as the crypto market shows signs of recovery. Base has been gaining traction among developers and users, making it an increasingly attractive platform for token launches.
Tags: #LinksDAO #Base #CommunityToken #Web3 #DeFi
Source: CoinDesk