Revenue generation mechanism to sustain Stellar app developers

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xming980

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Jan 18, 2022, 4:02:10 PM1/18/22
to Stellar Developers
Stellar sorely lacks a way for app developers to sustain development. On other blockchains apps can use turing complete smart contracts to implement interesting and decentralized tokenomics (often fee based) to generate revenue. For example liquidity pool apps on other blockchains takes a cut of the liquidity provider fee and use that as the basis of token utility (e.g. token burning) to sustain themselves. Stellar tokens in comparison generally don't have utility and lack ways to create utility from the underlying blockchain. I think this limitation makes Stellar tokens less appealing and as a result quality projects are less likely to build on Stellar.

One of the very valid uses of inflation (when it was around) was to allow XLM holders to support development of their favorite apps. However its sizing made it usable by very few apps and inflation pools ended up hijacking the all the rewards. I think it's worthwhile to look for another fee or inflation based mechanism in stellar core to sustain ecosystem development. Perhaps a second "front end operator" fee could be introduced to fund the origination app. ProjectSerum is one of the platforms with this concept and it has become the foundation of many Solana defi apps.
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