{"id":494066,"date":"2025-08-23T19:14:32","date_gmt":"2025-08-23T18:14:32","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=494066"},"modified":"2025-08-23T19:14:32","modified_gmt":"2025-08-23T18:14:32","slug":"stop-treating-tokens-like-payday-buttons-theyre-infrastructure","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/stop-treating-tokens-like-payday-buttons-theyre-infrastructure\/","title":{"rendered":"Stop treating tokens like payday buttons \u2014 they&#8217;re infrastructure"},"content":{"rendered":"<p><em>The following is a guest post and opinion from Corey Billington, <span data-sheets-root=\"1\">Co-Founder and CEO at<\/span> Blubird.<\/em><\/p>\n<p>Most token launches play out the same way. Founders spend weeks buried in spreadsheets, lawyers churn out disclaimers, and influencers start teasing \u201cTGE soon.\u201d Behind the scenes, though, private round investors are just waiting for cliffs to end so they can dump. Circulating supply spikes, token price tanks, and social media fills with threads about \u201cunlock risk.\u201d<\/p>\n<p>Somewhere in the mess, we forget the obvious: tokens are infrastructure, not short-term fundraising tools.<\/p>\n<p>I\u2019ve worked with over 80 teams, and the same pattern keeps coming up. Founders rush to mint a token so they can raise without touching equity. Then they try to backfill utility into the product later \u2014 a strategy that rarely succeeds. That backwards approach is what leads to all the usual failures: oversized insider allocations, unlock schedules that make no sense, and \u201cuse cases\u201d that no one actually uses.<\/p>\n<p>At that point, every token purchase is just helping someone else cash out.<\/p>\n<h2>Why Raising First and Figuring It Out Later Breaks Everything<\/h2>\n<p>When your token\u2019s main job is to raise money, you\u2019re walking into two problems: legal risk and market damage.<\/p>\n<p>On the legal side, if your token doesn\u2019t have real utility from the start, it starts looking like a security \u2014 and the SEC <a href=\"https:\/\/cryptoslate.com\/ripple-urges-us-senate-to-revise-crypto-bill-over-vague-definitions-and-sec-overreach\/\">isn\u2019t known<\/a> for nuance. You can call it a utility token, but the Howey Test doesn\u2019t care about your pitch deck. And if you pair that with a fast emissions schedule and the token price crashes \u2014 don\u2019t be surprised if frustrated holders come knocking.<\/p>\n<p>But the real damage is strategic. Projects that treat the token like a fundraising shortcut almost never have a plan for what happens after launch. They end up building around cliffs, vesting charts, and investor pressure, not product usage or user growth.<\/p>\n<p>And then, they\u2019re bleeding tokens into a market that isn\u2019t ready to catch them. 90% of token unlocks <a href=\"https:\/\/cryptoslate.com\/90-of-token-unlocks-drive-prices-down-declines-begin-a-month-ahead\/\">crash<\/a> prices, even when 5% of the total supply is released. Meanwhile, over the next few months alone, scheduled unlocks<a href=\"https:\/\/tokenomist.ai\/emission\/crypto-market?interval=month\"> will total<\/a> around $9 billion.<\/p>\n<h2>Build the Business Plan First, Not the Tokenomics Last<\/h2>\n<p>The best token models start with the business. I mean a proper plan \u2014 the kind you\u2019d pitch to a Series A investor and that forces you to map out what the company actually does, how it grows, where revenue comes from, and who benefits.<\/p>\n<p>This clarity gives you the answers. Does this even need a token? Where does the token naturally plug into the product? What roles do users, validators, contributors, or liquidity providers play in creating demand?<\/p>\n<p>Once that\u2019s mapped, you can start modeling out the flow: who earns, who spends, who stakes, and when. Then you stress-test it: \u2018What happens in a down market? What if usage explodes? How would fees, rewards, and emissions respond?\u2019<\/p>\n<p>Tools like Machinations can help you out here; so does walking through the model with someone who\u2019s seen a hundred of them. But if the foundation is rotten, all the software and advice in the world won\u2019t fix it.<\/p>\n<h2>If the Token\u2019s Not Essential, Don\u2019t Launch It Yet<\/h2>\n<p>Here's what I tell every team: if your product can launch without a token, it probably should. Use equity, milestone-based SAFEs, or rev-share notes to fund early dev. When the product has traction \u2014 and there\u2019s a clear role for the token in the loop \u2014 then you\u2019re good to deploy.<\/p>\n<p>Launching too early just invites speculation, so you end up spending the next two years defending a price chart instead of growing your user base.<\/p>\n<p>On the other hand, when tokens are essential \u2014 e.g., powering blockspace fees, staking access to data feeds, or gating ecosystem rewards \u2014 their utility becomes the anchor. Demand grows with usage; the token is earned, spent, and recycled inside the product itself. That\u2019s when emissions don\u2019t destroy value, because you\u2019ve got real activity behind it.<\/p>\n<p>Take Solana: <a href=\"https:\/\/cryptoslate.com\/january-marks-7-billion-crypto-token-unlock-amid-market-uncertainty\/\">daily unlocks<\/a> of roughly $14 million in tokens have weighed on its price, yet periods of strong network demand have repeatedly pulled it back up. Sui offers another case in point \u2014 after a January 1 unlock that <a href=\"https:\/\/www.banklesstimes.com\/articles\/2025\/01\/04\/sui-breaks-5-barrier-can-momentum-hold-after-token-unlock\/\">released<\/a> 64.19 million tokens (about $300 million), the token still surged nearly 28%, reaching a new all-time high of $5.1.<\/p>\n<h2>Founders Need to Design for Longevity, Not Launch Day<\/h2>\n<p>Founders love vesting cliffs and time-based unlocks \u2014 it\u2019s simple, easy to model, and ticks the box for \u201clong-term incentives.\u201d Still, time alone isn\u2019t a great signal. It\u2019s way more efficient to tie unlocks to real milestones: number of active validators, modules shipped, usage targets hit; so the token supply would grow with the network.<\/p>\n<p>Don\u2019t build your model in a vacuum. Add slippage, bear markets, and team delays. If your model can\u2019t survive those shocks, it\u2019s not ready for launch.<\/p>\n<p>And once you think it's bulletproof, get someone to tear it apart. Experienced builders will spot the incentive flaws and edge cases your team\u2019s too close to see.<\/p>\n<h2>Tokens Shape the Whole Market \u2014 So Build Accordingly<\/h2>\n<p>A lot of this comes down to mindset. If more founders treat token design as actual infrastructure \u2014 not cosmetic branding or a fundraising hack \u2014 we'd see better launches and stronger networks.<\/p>\n<p>Venture investors are already starting to shift: the best of them focus on demand loops, not hype cycles. Exchanges are favoring transparency and sustainability over mystery unlocks and flash marketing. And regulators are more likely to respect a commodity-style utility token when it's baked into usage, not just bolted on for optics.<\/p>\n<p>Basically, it all boils down to this: if removing your token doesn\u2019t break the loop, don\u2019t launch. Build the loop first, then the token.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The following is a guest post and opinion from Corey Billington, Co-Founder and CEO at Blubird. Most token launches play out the same way. Founders spend weeks buried in spreadsheets, lawyers churn out disclaimers, and influencers start teasing \u201cTGE soon.\u201d Behind the scenes, though, private round investors are just waiting for cliffs to end so [&hellip;]<\/p>\n","protected":false},"author":1625,"featured_media":494091,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,25891,36,76736],"tags":[],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Stop treating tokens like payday buttons \u2014 they&#039;re infrastructure<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/stop-treating-tokens-like-payday-buttons-theyre-infrastructure\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Stop treating tokens like payday buttons \u2014 they&#039;re infrastructure\" \/>\n<meta property=\"og:description\" content=\"The following is a guest post and opinion from Corey Billington, Co-Founder and CEO at Blubird. Most token launches play out the same way. Founders spend weeks buried in spreadsheets, lawyers churn out disclaimers, and influencers start teasing \u201cTGE soon.\u201d Behind the scenes, though, private round investors are just waiting for cliffs to end so [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/stop-treating-tokens-like-payday-buttons-theyre-infrastructure\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2025-08-23T18:14:32+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/08\/tokens-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Corey Billington\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Corey Billington\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/stop-treating-tokens-like-payday-buttons-theyre-infrastructure\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/stop-treating-tokens-like-payday-buttons-theyre-infrastructure\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/corey-billington\/#person\",\"name\":\"Corey Billington\",\"url\":\"https:\/\/cryptoslate.com\/author\/corey-billington\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/corey-billington\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/corey-billington\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/08\/corey-billington-300x300.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/08\/corey-billington-300x300.jpg\",\"caption\":\"Corey Billington\"},\"jobTitle\":\"Co-Founder and CEO\",\"description\":\"Corey Billington is a Web3 founder and product strategist building infrastructure for compliant digital asset fundraising. 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Billington","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/cryptoslate.com\/#\/schema\/person\/image\/","url":"https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/08\/corey-billington-150x150.jpg","contentUrl":"https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/08\/corey-billington-150x150.jpg","caption":"Corey Billington"},"description":"Corey Billington is a Web3 founder and product strategist building infrastructure for compliant digital asset fundraising. He\u2019s the Co-Founder and CEO of Blubird, a platform that gives Web3 teams the tools to manage tokenomics, cap tables, smart contract deployment, investor communications, token claims, and real-world asset (RWA) tokenization. Blubird is built to help projects launch faster, raise capital more efficiently, and stay compliant from day one. Corey\u2019s experience spans every stage of startup growth. Prior to Blubird, Corey started and scaled several ventures, including Latitude Blockchain Services and Andromeda Capital, a Web3-focused VC firm that has backed over 300 projects. He\u2019s worked with more than 80 teams on token design, go-to-market planning, and fundraising, and has served on over 40 advisory boards, helping founders move from concept to product in a fast-moving space. Corey\u2019s spent the last decade deep in early-stage products, building and advising through multiple cycles. Blubird is the platform he wished existed years ago \u2013 a practical tool that helps founders stay focused on building while handling the complex stuff behind the scenes.","url":"https:\/\/cryptoslate.com\/author\/corey-billington\/"}]}},"_links":{"self":[{"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/posts\/494066"}],"collection":[{"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/users\/1625"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/comments?post=494066"}],"version-history":[{"count":6,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/posts\/494066\/revisions"}],"predecessor-version":[{"id":495264,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/posts\/494066\/revisions\/495264"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/media\/494091"}],"wp:attachment":[{"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/media?parent=494066"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/categories?post=494066"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/tags?post=494066"},{"taxonomy":"prediction_market_topic","embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/prediction_market_topic?post=494066"},{"taxonomy":"post_folder","embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/post_folder?post=494066"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}