Projects defaulted to vague governance structures rather than direct economic benefits for token holders, limiting their investment appeal.
Crypto News
Bitwise Chief Investment Officer Matt Hougan says crypto tokens are becoming more effective at returning value to holders. He argues this trend, combined with upcoming network upgrades, could drive substantial price increases in 2026.
Hougan explained that most tokens were designed during a regulatory period when value capture mechanisms carried significant risk. Projects defaulted to vague governance structures rather than direct economic benefits for token holders, limiting their investment appeal.
The regulatory environment has shifted considerably. Hougan stated that under current conditions, projects are unwinding previous design limitations and implementing holder-friendly economics that were previously considered too risky to pursue.
Uniswap's UNI token demonstrated this evolution earlier in November. The Uniswap Foundation and Labs introduced proposals to implement protocol-level fees that would burn tokens and create a fee discount system to boost liquidity provider returns.
The Uniswap token surged following the announcement of these investor-friendly changes. Hougan predicted that if the governance vote passes, Uniswap could enter the top 10 cryptocurrencies by market capitalization based on improved token economics.
Hougan identified Ethereum's Fusaka upgrade as another catalyst for increased value capture. The upgrade, expected to launch on mainnet in December, will modify staking economics and implement execution layer improvements that benefit Ethereum holders.
The Fusaka upgrade represents an under-appreciated market catalyst, according to Hougan. He suggested Ethereum could lead the broader crypto recovery as investors recognize the positive impacts of the network changes.
XRP is also moving toward enhanced value capture through community discussions about staking implementation. Hougan noted that adding staking would fundamentally change the economic proposition for XRP token holders.
The connecting thread across these developments is rising value capture in digital assets. Hougan emphasized that many investors view token economics as static when the reality shows continuous improvement across major cryptocurrencies.
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