@georgiana2a5
NFT liquidity protocol Sudoswap briefly surpassed OpenSea in trading volume, yet its SUDO token collapsed by 90% due to poor value capture. This underscores a recurring issue in DeFi—high usage does not guarantee token appreciation. If a protocol does not require its token for transactions, governance, or staking, traders will use the platform without holding its asset. For sustainable token economics, Sudoswap must integrate mechanisms that create direct demand for SUDO, such as fee-sharing, staking rewards, or exclusive access. Otherwise, its token will remain detached from its platform’s success.
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