X @BREAD | ∑:

Token Categorization & Evolution - The industry categorizes tokens into generations based on their tech stack, similar to software development [1] - Many first-generation (gen1) tokens lack structural ties to their protocol/ecosystem's success due to regulatory concerns, deeming them likely to fail [1] - A new generation of tokens, exemplified by tokens like $HYPE, $AERO, and $PUMP, signals value alignment and is favored by the market [1] Strategic Imperatives & Tokenomics - Incumbents with outdated technology and token models may struggle to compete with emerging "avant-garde" models [2] - Protocols embracing new models are expected to generate higher equity premiums than traditional cash flows [2] - Reinvesting revenues to grow the business is considered more beneficial than distributing value to token holders [3] - The industry advises against using revenues for token buybacks in most cases, as it's often a suboptimal strategy [2]