A report from venture capital firm a16z suggests that more crypto companies should explore using “arcade tokens” to attract users and build strong digital economies.
These tokens work a bit like airline miles or reward points. They are meant to be used within a certain product or service, not bought or sold for profit.
Arcade tokens are designed to have steady value inside a platform. This makes them useful for encouraging participation rather than speculation.
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According to a16z, arcade tokens could play an important role in how blockchain systems grow and develop. Just as stablecoins are used for payments and network tokens help run decentralized systems, arcade tokens can support practical use inside apps and services.
One example mentioned is Blackbird, a company that created a restaurant-focused platform using its FLY token. This system rewards users who use the service and lets them redeem tokens at participating restaurants.
The rewards are managed by a custom-built blockchain system that works alongside a separate network token.
Unlike coins meant to give ownership or voting rights, arcade tokens are simply tools for access. They are not designed to grow in value on the market, and their pricing can be controlled within the system.
A16z stated that arcade tokens may work especially well for systems based on spending or those that connect with real-world services.
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