The notion that a Web3 project can’t exist without its own token remains a common misconception among a broad base of internet users. In practice, many of the largest projects tied to cryptocurrencies and blockchain technologies operate without native tokens. At their core are product-driven business models built around services, subscriptions, and transaction fees.
For example, the Web3 infrastructure platform Fireblocks has reported that more than 2,000 financial institutions use its solutions, with total transaction volume exceeding $10 trillion. The company doesn’t issue its own token, as its business model centers on enterprise services in decentralized infrastructure and security.
The term “token” itself is broad. It isn’t limited to cryptocurrencies, and its meaning varies significantly depending on the context. A more detailed explanation is available in CP Media’s dedicated material.
A Shift in the Web3 Paradigm
The first wave of Web3 projects was largely built on the idea that a native token would serve as the primary growth engine. It functioned simultaneously as a funding tool, a user acquisition mechanism, and a foundation for the project’s future value. Against this backdrop, product quality often took a back seat, while market expectations around the token began to take on a life of their own.
Starting around 2021, as the market gradually institutionalized, the focus increasingly shifted toward product quality. Native tokens were, for the most part, seen as speculative instruments. Investors began evaluating Web3 projects through a more traditional lens, with a stronger focus on:
- Cash flow sustainability
- Risk management
- Regulatory clarity
- Measurable utility
Over time, the attention of potential partners also moved away from headline valuations toward revenue structures, cost bases, compliance frameworks, and a project’s ability to withstand stress scenarios.
Another factor was the rising cost of trust. According to TRM Labs, total cryptocurrency transaction volume exceeded $10.6 trillion in 2024, while illicit activity was estimated at around $45 billion. Against this backdrop, Chainalysis analysts reported that the value of stolen digital assets reached $2.2 billion in 2024, up roughly 21% year over year. A significant share of security incidents was linked to compromised private keys. In such an environment, issuing a token introduced additional layers of risk, ranging from market speculation to regulatory and security concerns.
Why Issue a Native Token, and Why It’s No Longer Essential
Historically, native tokens served multiple functions at once. Today, each of these roles has viable alternatives, which are often more predictable and reliable.
Funding
A native cryptocurrency has traditionally been used as a fast way to raise capital. Today, however, Web3 projects are increasingly turning to more conventional funding sources, including venture capital, strategic partnerships, and credit lines. These options offer clearer legal frameworks and eliminate the need to sustain a native token’s market, including providing liquidity, as well as ongoing operational and communication support.
User Incentives
At a certain stage in Web3’s development, native tokens effectively substituted for loyalty programs. In practice, the same value can often be delivered more simply, and without introducing a separate financial instrument, through discounts, subscriptions, higher limits, rewards programs, cashback, and priority access to features.
Governance and Coordination
Decentralized governance may look compelling in theory, but in practice, it often leads to concentrated influence and conflicts of interest. Alternatives include specialized legal structures, multi-signature setups, transparent procedures, reputation-based mechanisms, and corporate governance. These approaches are less decentralized but more resilient.
Value Monetization
The idea that a protocol’s value should be reflected in its token’s market capitalization doesn’t always hold. In mature products, value is more effectively monetized through pricing, fees, subscriptions, and paid features. In other words, through direct demand rather than market expectations.
Alternative Monetization Models for Web3 Products
Several business models are commonly used by Web3 projects without native tokens, and in many cases, projects combine multiple approaches at once.
Transaction and Volume-Based Fees
The classic model involves charging a fee on each transaction.
For example, in 2025, Robinhood reported net revenue exceeding $4.4 billion, with $901 million generated from crypto asset transactions. Another case is Banxa, which processed $217 million in transactions in the last quarter of 2024, earning an average fee of around 3% per transaction.
This model is also widely used in the payments segment. For instance, the CryptoProcessing by CoinsPaid team reported in spring 2025 that the service processes approximately €875 million in monthly payments, while maintaining fees below 1.5%.
A key feature of this model is that revenue is driven by user activity and real utility, rather than the market performance of a standalone token.
Subscriptions and Tiered Pricing
Subscriptions create more predictable revenue streams and reduce exposure to market volatility. For example, Robinhood Gold, the company’s premium offering, had approximately 3.5–3.9 million users in 2025 and generated around $170–180 million in annual revenue, providing a steady flow of recurring income.
Infrastructure-Focused B2B Services
Another established model is the provision of B2B services related to custody, key management, integrations, security, and compliance. This approach is closer to the enterprise software market, where clients pay for reliability, scalability, and risk control.
For instance, according to Zippia, Fireblocks generated $823.7 million in revenue from enterprise Web3 services in 2024. Between 2020 and 2024, this figure increased by 95.48%.
Hardware Products and Related Services
When a product is tied to key storage, a physical device can become the core monetization driver.
For example, hardware wallet manufacturer Ledger reported in 2025 that it had sold more than 7.5 million devices over 10 years. These devices secure assets representing roughly 20% of the total cryptocurrency market by value.
Data Access and Analytics
Monetization can also be built around access to data and advanced analytics capabilities.
A notable example is the Dune platform, which shows that blockchain data analytics can function as a standalone business. In 2024, the project’s revenue was estimated at around $9–13 million, according to various sources, and continues to grow as the number of supported networks expands. The company has also raised $79.4 million across three funding rounds, reaching an estimated valuation of around $1 billion.
When a Native Token Still Makes Sense
There are cases where a token is a technical necessity. These typically include:
- Layer-1 blockchain networks. Such systems require an internal mechanism to pay for computing resources, data storage, and transaction processing, while also relying on economic incentives to secure the network. In this context, a native token is встроенным элементом технической архитектуры and underpins its stability.
- Decentralized autonomous organizations. When a project is designed from the outset as a decentralized structure, a token serves as a coordination tool and a means of allocating rights.
Decentralized resource markets. In open resource markets, typical of DePIN projects, a token functions as a universal medium of exchange between participants, enabling the decentralized economic model to operate.
If a token’s specific utility can’t be clearly defined, it is more often than not just a source of additional risk.
Today, native tokens are increasingly viewed as an option rather than a mandatory component of a Web3 project. In practice, if a product truly creates value, market participants are willing to pay for it directly. In such cases, the absence of a native token helps reduce legal and reputational risks, strengthens the project’s financial model, and allows teams to focus on product development.
