From Points to Tokens: The Progressive Development Path of Web3 Projects

In the blockchain industry, many people believe that projects without tokens lack core value. However, for most blockchain projects, whether it is token economics design, exchange operations, or the integration of technology and public chains, they have not yet reached a mature level. More importantly, the issuance and application of tokens face a complex regulatory environment globally.

For startup teams, directly issuing tokens not only brings enormous compliance pressure but may also lead to operational loss of control. Therefore, a more prudent choice is to first incentivize users through a points system, and after the ecosystem stabilizes, gradually convert the points into tokens, ultimately completing the assetization process.

The Value of Points: From Incentives to Transition

The advantage of the points system lies in providing projects with a low-cost tool to validate the market, while avoiding legal risks during the initial phase of token issuance. Through points, teams can offer rewards to users within the application, enhancing user retention and activity. As the points mechanism matures, it can be tokenized, granting more value and enabling on-chain circulation.

This model not only enhances the operational flexibility of the team but also builds user trust and ecological foundation through points, laying the groundwork for the future token economy. For example, a blockchain platform that focuses on community autonomy incentivizes users to vote and participate in governance tasks through points, and after stabilizing the points system, it introduces on-chain tokens, allowing users to more intuitively perceive the value and role of the tokens.

Taking a well-known group that recently issued tokens as an example. This group was established in 2018 and is a leader in the field of digital asset financial services in Asia. The group is known for its comprehensive Web3 ecosystem layout, covering multiple core areas such as trading, investment, tokenization services, and infrastructure. Its main businesses include two major trading platforms, one of which is the first licensed virtual asset exchange in Hong Kong, providing users with compliant and secure trading services; the other caters to global users, offering diversified digital asset trading services and holds relevant financial licenses.

The core design purpose of the group's token is to support its vast business network and enhance user engagement. The total supply is fixed at 1 billion coins and is launched through a private distribution method, avoiding the legal and compliance risks that may be associated with public sales. This distribution method directly links the value of the token to the activity of the ecosystem, making it more sustainable. In practical application scenarios, the token is endowed with multiple functions, including paying platform fees, providing trading fee discounts, serving as a core tool for community incentives, and granting holders priority access to new products and services.

A Win-Win Path for Compliance and Business Verification

The path from points to tokens is not only the key to the legalization of projects but also a necessary step for business validation. For Web3 entrepreneurs, if token issuance is also part of the future roadmap, starting from points may be a more suitable development path. We can analyze this in detail from the following four aspects:

1. Market validation of user incentives
2. Choosing the Timing for Tokenization
3. The Balance Between Compliance and Financing
4. Linkage Verification of Technology and Applications

Through these strategies, the team can not only steadily advance the project's compliance but also effectively validate its commercial value and user demand, laying a solid foundation for the future of the Token economy.

Conclusion

From points to tokens, it is not only an evolution of a business model but also an entrepreneurial path that combines market validation and compliance innovation. In the context of an increasingly complex global regulatory environment, startup teams should abandon the fantasy of "one-step token issuance" and adopt a gradual strategy, starting with points, accumulating data through market validation, optimizing mechanisms, and then transforming successful experiences into asset-based applications on the blockchain.

This "incremental tokenization" model not only reduces the legal risks in the early stages of a project but also makes the process of validating commercial value more natural and efficient. Blockchain entrepreneurs can only find their breakthrough in a complex and ever-changing market environment by continuously experimenting and optimizing within a compliant framework. In the exploration of the blockchain field, being steady and methodical may be the true meaning of "fast."